Co-op bank posts Ksh10.9 billion net profit

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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.

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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.

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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.

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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.

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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.

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