Co-operative Bank on Thursday reported a 10% reduction in profitability to Ksh9.8 billion during the nine months ended September 2020 with a higher loans provision setting back the lender which would have otherwise reported a profit increase under normal circumstances.
The lender’s loan loss provision increased twofold to Ksh4 billion up from Ksh2.1 billion in the backdrop of loan restructurings and in the anticipation that customers might not be able to service their loans on due date.
The Ksh9.8 billion was a decline from the Ksh10.9 billion reported at a similar juncture last year, the group’s unaudited financial results show.
Overall, the group’s balance sheet grew to Ksh511 billion up from Ksh441 billion with net loans and advances to customers accounting for Ksh284.2 billion.
By the same token, during the comparable periods under review, customer deposits rose to Ksh375.4 billion up from Ksh323 billion.
The lender’s liabilities also grew to Ksh427.2 billion up from Ksh365.4 billion.
Co-op’s interest income for the period stood at Ksh32.5 billion up from Ksh30.4 billion lifted by loans and advances which raked in a pretty Ksh22.3 billion.
In the same column, non-interest income for the period stood at Ksh13.6 billion.
The bank also disbursed some Ksh16.1 billion as loans, advances and other forms of facilities to insiders; Ksh6.3 billion to directors, shareholders and associates and Ksh9.8 billion to its employees.