Co-op Bank Net Profit Slightly Drops to Ksh 7.2 Billion
Kevin Namunwa  |  Aug 14, 2020

The Co-operative Bank of Kenya’s net profit has dropped by 3.6% to Ksh 7.2 billion from last year’s Ksh 7.5 billion.

The lender, on Thursday, posted a Ksh 7.2 billion net profit on bad loan provisioning. Bad loan provisions increased from Ksh14.9 billion to Ksh 15.6 billion during the period under review which killed off any possibility of the lender improving on its performance from last year.

Despite the drop in net profits, the lender’s balance sheet adjusted up from Ksh 429.6 billion to Ksh 513.9 billion during the period under review.

Its total operating income also grew by 5% to Ksh 24.2 billion from Ksh 23 billion while net interest income grew by 12% to Ksh 15.9 billion from Ksh 23 billion while net interest income grew by 12% to Ksh15.9 billion.

Customer deposits increased from Ksh323.6 billion to Ksh384.6 billion while net loans and advances to customers rose from Ksh257.6 Billion to Ksh 272.2 billion. Gross Non-Performing Loans (NPLs) and advances to customers increased by Ksh3.7 billion from Ksh30.6 billion to Ksh34.7 Billion.

The lender’s interest income marginally from Ksh 20.4 billion to Ksh 21.8 billion aided by investment in government securities which grew by 29% to Ksh 122.4 billion. On the other hand, Earnings Per Share declined from Ksh 1.27 to Ksh 1.23 during the period under review.

Total Shareholders funds increased to Ksh80.1 billion compared to the Ksh71 billion posted the previous year.

So far, Co-op Bank has restructured loans amounting to Ksh 39.2 billion since the country reported its first coronavirus infection case in mid-March.

The situation has been no different with other local lenders as the banking sector felt the effect of the pandemic on the country’s economy. Mst Kenyan banks have either recorded a loss or a decline in profit in their half-year results.