Co-op bank records 23% drop in net profit to Ksh. 10.9 billion

Co-op bank records 23% drop in net profit to Ksh. 10.9 billion

The Co-operative Bank Group registered a net profit of Ksh.10.3 billion for the year ended December 2020.

This represents a 23 percent drop in profitability compared to the Ksh14.3 billion profit recorded last year.

The lender attributed the reduction to increased loan provisions as a result of COVID-19 and currency translation in the lender’s South Sudan operation.

During the period under review, loan provisions increased255 percent to Ksh.8.5 billion from just Ksh.2.5 billion during a similar period last year.

This even as the lender restructured loans worth Ksh.4.9 billion in appreciation of the disruptions of the pandemic to businesses.

Despite the harsh macroeconomic environment, the bank’s assets grew 18 percent to Ksh.537 billion from Ksh.457 billion in the same period last year.

Total operating expenses increased by 41.8 percent to Ksh.39.4 billion from Ksh.27.8 billion in 2019.

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