Co-operative Bank Group has reported a profit before tax of Ksh16.5 billion for the period ending 30th September 2021, an impressive 20% growth compared to Ksh13.8 Billion in the same period of the previous year. Net profit hit Ksh11.6 billion up from Ksh9.8 billion reported in third quarter of 2020.
The strong performance exceeds the bank’s pre-Covid-19 performance and is in line with the Group’s strategic focus that supports growth, resilience and agility. According to the financial results, Co-op Bank group’s total assets grew by Ksh82 billion (up 16%) to Ksh592.9 billion compared to Ksh510.9 billion in the same period last year. Net loans and advances book grew by Ksh22.1 billion, representing a 7.8%, from Ksh284.2 billion to Ksh306.3 billion.
Customer deposits expanded by 12% from Ksh375.5 billion to Ksh420.4 billion. Borrowed funds increased by Ksh17.7 billion (+67.6%) to Ksh43.8 billion from Ksh26.2 billion in 2020. Shareholders’ funds went up to Ksh95 billion (+16%) from Ksh82.0 billion in 2020, enabling the bank to continue pitching for big ticket deals.
Total operating income grew by 19.2% from Ksh37.2 billion to Ksh44.4 billion. Total non-interest income grew by 15.6% from Ksh13.6 billion to Ksh15.7 billion.
Net interest income grew by 21.3% from Ksh23.6 billion to Ksh28.7 billion. Total operating expenses grew by 19.2% from Ksh23.5 billion to Ksh28 billion on account of a 50% prudential growth in loan-loss provisions.
Managing Director and CEO Dr Gideon Muriuki said credit management remains a key focus area in supporting a return to pre-Covid non-performing loans levels.
“The group prudentially increased loan loss provisions to Ksh6 billion in the third quarter of 2021, in appreciation of the challenges that businesses and households continue to face due to the effects of Covid-19,” Mr Dr Muriuki said.
A total of Ksh49 billion in loans was restructured during the Central Bank of Kenya restructure window that ended on 31st March 2021, with the restructured facilities largely performing as per the realigned agreements.
Strong Digital Footprint
Through its multi-channel strategy, the bank has successfully moved 93% of all customer transactions to alternative delivery channels, backed by an expanded 24-hour contact centre, mobile banking, 589 ATMs, internet banking and over 23,000 Co-op Kwa Jirani agency banking terminals.
Co-op Consultancy & Bancassurance Intermediary Limited posted a Profit Before Tax of Ksh648.0 million as at 30th September 2021, riding on strong penetration of Bancassurance business.
Co-operative Bank of South Sudan, a partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) returned a monetary loss of Ksh104 million in Q3 of 2021 attributable to hyperinflation accounting due to currency devaluation of the South Sudanese pound.
Co-op Trust Investment Services contributed Ksh92.3 million in Profit Before Tax in Q32021, with funds under management standing at Ksh187.1 billion compared to Ksh123.7 billion as at Q3 2020.
Kingdom Bank Limited (formerly Jamii Bora Bank) contributed a Profit Before Tax of Ksh413 Million during this period, compared to the 2020 full year loss of Ksh124 million. Co-op Bank holds a controlling 90% equity interest in Kingdom Bank, which has over 444,000 customers and 17 branches.