Co-op Bank’s 2021 first quarter profit drops by 4%
Co-operative Bank has reported a 4 percent drop in net profit in the first quarter of 2021 compared to the same period in 2021.
The listed lender’s profit after tax dropped Ksh.3.46 billion compared to Ksh.3.59 Billion reported in the previous period under review.
Co-op’s total assets grew by 18 percent to Ksh.553 billion up from Ksh.470 Billion in the same period last year.
Net loans and advances book grew by Ksh.22 billion.
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According to the bank, total non-interest income declined by 9 percent to Ksh.4.52 billion caused by fee waivers in support of customers and the general economic slowdown.
In the first quarter of 2021, the lender’s total operating expenses grew by 27 percent from Ksh.7.3 billion on account of higher loan-loss provisions.
The Group further increased loan loss provisions to Ksh.2.3 billion this year, in appreciation of the challenges that businesses and households continue to face due to the economic effects of the ongoing 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 have been restructured to support customers impacted by the pandemic, “said Dr. Gideon Muriuki, Group Managing Director and Chief Executive Officer.
Dr. Muriuki said the Group has put in place a proactive mitigation strategy anchored on a strong enterprise risk management framework, to enable uninterrupted access to banking services.
“We shall continue to pursue strategic initiatives that focus on resilience and growth in the ‘New Normal’ as the Nation focuses on flattening the curve and as vibrancy returns to the Economy,” he added.