Co-op Bank’s Profit After Tax Flat at Kes 3.6 Billion
The Co-operative Bank of Kenya has reported a Kes 5.1 billion profit before tax for the first quarter of 2020, a performance similar to the one recorded in the same period last year. Profit after tax was Kes 3.6 billion.
In the first quarter of the year, the bank added Kes 24.5 billion in its loan book to stand at Kes 276.2 billion representing a 9.8% growth.
This was mainly driven by mobile loans through its M-Coop Cash which advanced loans totaling to Kes 16 billion during the period.
Total operating income grew by 12.5% from Kes 11.1 billion to Kes 12.5 billion.
However, total operating expenses grew by 20.6% from Kes 6.0 billion to Kes 7.3 billion owing to higher loss loan accounts provisions and staff expenses.
Total assets grew 10.5% to stand at Kes 470.4 billion compared to the same period last year while customer deposits grew by 6.9% to kes 339.6 billion.
Total non-interest income grew to Kes4.9 billion from Kes4.1 billion while total operating income grew to Kes12.5 billion from Kes11.1 billion whilethe gross Non Performing Loans (NPLs/bad loans) stood at Kes31.8 billion up from Kes29.7 billion.
Investment in Government securities grew by Kes11.9 billion, a growth of 11.5 percent to Kes115.9 billion compared to Kes103.9 billion in 2019.
The bank says planned acquisition of Jamii Bora Bank okayed by shareholders in March this year will offer it the opportunity to cross-sell and deepen product offering to the enhanced customer base and create a niche bank to offer specialized credit offerings that include MSMEs.