Home Business Co-op Bank profit after tax raises 5.2pc to Ksh 6.1B

Co-op Bank profit after tax raises 5.2pc to Ksh 6.1B

Higher income during the first three months of this year saw Co-operative Bank record a net profit of Ksh 6.1 billion up from Ksh 5.8 billion recorded over the same period last year.

During the period under review, the giant lender’s total operating income grew 6.5pc to stand at Ksh 17.9 billion from 16.8 billion shillings.

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Net interest income on the other hand, grew 10.8pc to Ksh 7.1 billion while revenues from loan interest was up by Ksh 400 million to Ksh 10.8 billion during the first quarter of the year.

Co-op Bank Group Chief Executive Officer Dr Gideon Muriuki said the lender issued loans totaling Ksh 360.1 billion from Ksh 324.5 billion which represents 11pc growth.

“Credit management remains a key focus area, with the Group prudentially making provisions of Ksh 1.5 billion which has enhanced the Bank’s Loan Loss Reserve/Coverage levels to a high of 72pc from 69pc in 2022,” said Dr Muriuki.

Total assets grew 5.7pc to Ksh 631.1 billion on the backdrop of higher customer deposits which marginally, to Ksh 419.8 billion from Ksh 410.8 billion.

Stronger growth was also witnessed in the banks digital channels as majority of Co-op Bank customers seek convenient banking services.

“Through our digital channel strategy, the Bank has successfully moved 91pc of all customer transactions to alternative delivery channels, a 24-hour contact centre, 543 ATMs, mobile and internet banking and over 17,000 network of Co-op kwa Jirani agents,” he added.

Mco-op Cash which has five million customers continues to grow non-funded income given that loans totaling 19.2 billion were issued during the first three months of this year.

Similarly, subsidiaries which include Co-op Consultancy and Bancassurance Intermediary, Co-op South Sudan, Co-op Trust Investment Services and Kingdom Bank delivered a combined gross profit of Ksh 0.75 billion.

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