The Co-operative Bank of Kenya posted an 18.4 percent jump in net profit for nine months ended September 30, 2021, to Ksh.11.6 billion from Ksh.9.8 billion last year.
The growth in profitability is attributable to higher income in the period with the lender seeing its total operating income rise by 19.4 percent to Ksh.44.4 billion.
The bank’s net interest income grew by 21.6 percent to Ksh.28.7 billion while non-interest funded income (NFI) has jumped to Ksh.15.7 billion from Ksh.13.6 billion.
Loan-loss provisioning costs jumped to Ksh.6 billion from Ksh.4 billion in September 2020. This saw non-interest expenses rise to Ksh.28 billion from Ksh.23.5 billion last year.
Net loans and advances to customers grew by 7.8 percent to Ksh.306.3 billion when the lender’s total assets hit Ksh.592.9 billion.
The bank’s earnings per share improved to Ksh.1.98 from last year’s at Ksh.1.67.
Co-op bank recently acquired Kingdom Bank has remained profitable in the period posting earnings of Ksh.413.1 million.
Its performance has been anchored on higher operating income which stood at Ksh.2.5 billion in the period. Kingdom’s core capital remained adequate at Ksh.1.2 billion at a time when its asset quality improved with gross non-performing loans (NPLs) falling to Ksh.6.4 billion from