Co-op Bank records a robust net profit of Sh6.1b in the first quarter

Co-operative Bank has recorded a net profit of Sh6.1 billion in the first three months on the back of solid non-interest and interest income growth.

This is an increase of 5.2 percent compared to Sh5.8 in profit after tax that the publicly listed lender made in the first quarter of last year.

“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility,” said Cooperative Bank CEO Gideon Muriuki.

The lender’s total operating income grew by 6.5 percent from Sh16.8 billion to Sh17.9 billion.

Non-funded income grew faster than interest income, with the lender recording a growth of 10.8 percent in non-interest income to touch Sh7.1 billion.

In the same period last year, Co-operative Bank, mostly owned by Saccos, earned Sh6.4 billion from non-interest income. Non-interest income includes fees and commissions.

Net interest income grew by 3.9 percent from Sh10.4 billion to Sh10.8 billion with the lender growing its loan book in a period that has been characterised by tight liquidity owing to the hike in Central Bank Rate by the Central Bank of Kenya.

Total operating expenses increased by 8.8 percent from Sh9.0 billion to Sh9.8 billion.

Last year, the Nairobi Securities Exchange-listed lender (NSE) recommended a dividend of Sh1.50 per share, a 50 percent increase on the Sh1 paid out last year, a major boost to the cooperative societies, the bank’s majority shareholders.

Cooperative Bank, a tier one lender, is the third largest bank by asset size behind KCB and Equity Bank.

The bank lends mostly to Saccos, who are also its main shareholders.