Co-op Bank announces Sh10.5 Billion Profit for Half year 2021

The Co-operative Bank Group has posted a profit sh 10.5 billion before tax in the second quarter of 2021.

This is 10% growth compared to KSh 9.4 billion recorded in the second quarter of 2020.This represents a strong profit after tax of Ksh 7,4 billion compared to Ksh 7.2 billion reported in the second quarter of 2020.

The increase came on the back of total operating income—made up of interest income and non-interest income—growing by 20 percent to Sh29.2 billion.

In a statement released on Wednesday, August 18, the group’s managing director and chief executive officer Gideon Muriuki said Co-op’s total assets grew by KSh 59.1 Billion) (+12%) to KSh 573 billion up from KSh 513.9 Billion in the same period last year.

Net loans and advances book grew 11% by KSh 29 billion from KSh 272.2 billion to KSh 301.2 billion.

During the period under review, customer deposits grew by 6%, from KSh 384.6 billion to KSh 407.7 billion.

The group prudentially increased loan loss provisions to KSh 4.2 billion in the second quarter in appreciation of the challenges businesses and households continue to face due to the economic effects of the ongoing COVID-19 pandemic.

“We continue to actively engage our customers to support them through this period, by re-aligning the servicing of facilities, funding and transactional needs as the situation unfolds. A total of KSh 49 billion in loans was restructured during the CBK restructure window that ended on March 31 to support customers impacted by the pandemic.”

Muriuki stated the lender was in the implementation phase of a credit risk adaptation project dubbed ‘Project Kilele’ supported by a global consulting firm.

It seeks to strengthen portfolio assessment, risk frameworks and enhance collection platforms aligned to the new business operating environment.

With online banking gaining momentum, the bank announced it would maintain a strong digital footprint, having moved 93% of all customer transactions to alternative delivery channels.

Kingdom Bank

Co-op’s subsidiaries posted improved results, with the 90 percent-owned Kingdom Bank returning Sh275 million net profit. It had booked Sh200.9 million loss in the full year to December.

Co-op Consultancy & Insurance Agency returned Sh433.8 million pre-tax profit on increased bancassurance business while that of Co-op Trust Investment Services was Sh47.9 million as funds under management rose by Sh59.1 billion