Co-op Bank Group has shrugged off the pandemic effects to grow its pre Tax profits by Ksh2.7 billion.
The Lender recorded a 20 percent increase in quarter three profits to hit Ksh16.5 billion up from ksh13.8 Billion recorded in the same period last year.
This comes in the backdrop of increased loan uptake with net loans and advances growing by Ksh22.1 Billion to Kshs306.3 Billion.
“This represents a strong Profit after Tax of Kshs.11.6 billion compared to Kshs. 9.8 Billion reported in third quarter of 2020,” said Gideon Muriuki Group Managing Director & CEO at Coop Bank.
Over the 9 months customer deposits grew by 12 percent from 375.5 Billion to 420.4 billion buoyed by increased uptake of digital banking
Following the performance the financial Position of the group has registered a growth as total assets grew by Kshs 82 Billion to Ksh592.9 Billion, compared to the same period last year.
The operating income also witnessed a 19.2 percent growth from Kshs 37.2 Billion to Ksh44.4 Billion, while total non-interest income recorded a 15.6 percent growth from Kshs 13.6 Billion to Kshs 15.7 Billion.
A growth in loan provisions also saw operating expenses grow by Kshs 23.5 Billion to Kshs. 28 Billion.
In appreciation of the challenges that businesses and households continue to face due to the effects of the ongoing pandemic, The lender increased loan loss provisions to Ksh 6 billion in the third quarter of year 2021,
The provisions led to the restructuring of Kshs49 Billion worth of loans during the CBK restructure window that ended on 31st March 2021.
“Through our multi-channel strategy, the Bank has successfully moved 93% of all customer transactions to alternative delivery channels; an expanded 24-hour contact centre, mobile banking, ATMs, internet banking and Co-op Kwa Jirani agency banking terminals.”
Focus on digital banking has seen the lender disburse loans worth Kshs 51.3 Billion disbursed year-to-date, averaging Kshs. 5.7 Billion per month.
Despite shareholders’ funds growing to Kshs. 95 Billion from Kshs. 82.0 Billion in 2020, Coop noted that it will be maintaining its dividends.
“The Board of Directors’ bold decision to sustain the same level of dividend payments to shareholders despite the Covid-19 crisis offered a most timely relief, especially to the over 15 Million-Member Co-operative Movement, whose livelihoods would have been severely impaired had the dividend been withheld,”
Kingdom Bank Limited (formerly Jamii Bora Bank) made a net profit of Sh413.1 million in during the period, contributing to Co-op Bank’s consolidated earnings.
This was an improvement compared to the 2020 full year loss of Ksh124 Million.
Co-op Bank holds a controlling 90% equity interest in Kingdom Bank, a fully-fledged commercial bank regulated by the Central Bank of Kenya with over 444,000 customers and 17 branches.
Financing for MSME
Last year the Group secured a long-term financing facility from the International Finance Corporation (IFC) amounting to Kshs8.25 Billion for on-lending at affordable terms to MSMEs involved notably in climate-smart projects, sustainable agricultural practices and clean energy.
From 2018 to date over Kshs. 25 billion has been disbursed to MSMEs through our E-Credit solution.
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