Co-operative Bank has reported a net profit of Kes 7.4 billion for the half-year period ended 30th June 2021, a 2.3% increase from the Kes 7.2 billion posted during the same period last year. The growth was attributed to growth in interest and non-interest income.
The increase came on the back of total operating income—made up of interest income and non-interest income—which increased by 20 % to Kes 29.2 billion during the first six months compared to Kes 24.2 million recorded in 2020.
Non-interest income in the group increased by 24 % to Kes 10.3 billion. The lender attributed the rise to its Mco-op Cash mobile wallet, disbursing loans valued at about Kes 5.6 billion monthly. Consequently, loans and advances increased by Kes 29 billion from Kes 272.2 billion recorded in 2020 to Kes 301.2 billion recorded during the period under review.
Customer deposits in the listed firm grew by 6% during the half-year period to Kes 407.7 billion from Kes 384.6 billion in 2020.
However, Co-op’s operating expenses rose by 28 % or Kes 4.1 billion to Kes18.7 billion on account of 123 % growth in provisioning for loan defaults. Loan loss provisioning rose to Kes 4.2 billion from Kes 1.9 billion, with the lender’s chief executive Gideon Muriuki attributing the need to recognise the economic hardships still facing borrowers in the COVID-19 environment.
During the first six months in the group, total assets stood at Kes 573 billion, a 12% rise compared to the Kes 513 billion reported during the same period last year.
Co-operative Bank Outlook.
The co-operative bank reported it has successfully moved 93% of all customer transactions to alternative delivery channels and expanded the 24-hour contact sector, mobile banking, 576 ATMs, internet banking, and co-op Kwa jirani terminals.
The lender has expressed optimism in their performance in 2021, saying they have implemented a proactive mitigation strategy anchored on a strong management framework to enable uninterrupted access to banking services.
“The restructured facilities are largely performing as per the realigned agreements. Our customers continue to show resilience therefore improving their repayment as the economy picks up in various sectors,” Gideon Muriuki CEO Co-operative Bank.