Cooperative bank made 10.9 billion shillings in net profit during the first nine months of this year driven by higher interest and non-interest income.
Chief Executive Officer Gideon Muriuki is optimistic of better performance going forward powered by the repeal of the Interest Rate Caps.
The growth was driven by total non-interest income which increased by 33% to 14.1 billion shillings. In addition, interest income from government securities increased by 18% to 8.2 billion shillings.
This powered the total operating income to grow by 9% to 35.2 billion shillings. The net profit would have risen by a higher margin were it not for total operating expenses which increased by 11% to Kshs. 17.8 billion on account higher loan loss provision.
During the period, net loans and advances grew 6 percent to 268.9 billion shillings. Investment in Government securities rose 13.7% to Kshs. 94.6 billion.
During the period, the lender’s South Sudan subsidiary made a pretax profit 174.7 million shillings while Co-op Consultancy & Insurance Agency contributed 511.1 million shillings.
Muriuki says the Bank has successfully moved 89% of all customer transactions to alternative delivery channels such as mobile banking, 24-hour contact centre, 586 ATMs, internet banking and over 16,000 Co-op Kwa Jirani banking agents.
With a key focus on digital banking, he says the lender has disbursed 27.6 billion shillings through its Mco-op Cash Mobile Wallet.