Co-op Bank of Kenya has posted a Net Profit of Kes 11.6 Billion in the nine months period ending September 30th, 2021 compared to net earnings of Kes 9.8 Billion over a similar period last, an improvement of 18.4%.
The lender’s earnings were boosted by an increase in loans to customers as well as an improvement in customer deposits.
Co-op Bank of Kenya had its Net Loans to Customers increase to Kes 306.3 Billion in Q3, 2021 from Kes 284.2 Billion in Q3, 2020 as individual families and businesses, including the lender’s catchment of the Co-operatives sector, experienced an accelerated recovery from effects of the pandemic in the third quarter of 2021.
Co-op Bank’s net income in the review period stood at Kes 11.6 billion, up from Kes 9.7 billion posted during the same period in 2020
Total interest income rose 21.5 per cent to Kes 39.5 billion as the lender expanded its loan book and investment in government debt paper. Loans to customers increased 7.7 per cent to Kes 306.3 billion while investment in treasuries rallied 55.5 per cent to Kes 193.3 billion.
Co-op Bank bucked the trend of reduced provisions for bad debt seen among its peers that have already published their results. It raised its provisions 50.3 per cent to Kes 6 billion as gross defaults increased 23.1 per cent to Kes 49.4 billion.
The bank’s increased conservatism contributed to its operating expenses rising 19.2 per cent to Kes 27.9 billion. Its deposit base rose 11.9 per cent to Kes 420.4 billion, leading to interest expenses increasing 22.3 per cent to Kes 10.9 billion.
In 2020, Co-op Bank secured a long-term financing facility from the International Finance Corporation, IFC, amounting to Kes8.25 billion for on-lending at affordable terms to MSMEs involved notably in climate-smart projects, sustainable agricultural practices and clean energy.
Partnered in the $300 million IFC-led Africa Medical Equipment Facility and Philips (a leading health technology company) to support Africa’s health sector operators purchase essential medical equipment and strengthening their response to the pandemic and other medical technology needs.
“Through our multi-channel strategy, the Bank has successfully moved 93 per cent of all customer transactions to alternative delivery channels; an expanded 24-hour contact centre, mobile banking, 589 ATMs, internet banking and over 23,000 Co-op Kwa Jirani agency banking terminals,” the Bank said in a statement.
A successful Universal Banking model and the implementation of SalesForce Effectiveness has seen the Group serve over 9 million Account holders across all sectors.
