Co-Op Bank of Kenya Group recorded a net profit of KSh 18.4 billion at the end of the third quarter of 2023, marking a 7.6% growth in earnings driven by consistent growth in what the lender said in a statement was due to its focus “on sustainable growth, resilience, and agility.”
While its loan loss provisions were reduced by KSh 1.5 billion, the bank’s non-performing loans portfolio grew by KSh 10.1 billion, while staff costs rose by KSh 1.4 billion. The bank now has 193 branches, which include 4 branches in the South Sudan subsidiary.
- •The bank made a net profit of KSh 17.1 billion at the end of Q3 2022.
- •Its earnings were driven by interest on loans as well as significant increases in customer deposits.
- •Pre-tax profit increased to KSh 24.7 billion in Q3 2023 from KSh 22.7 billion in Q3 2022.
The listed lender closed its last trading day on Thursday, November 16, 2023, at KSh 11.25 per share on the Nairobi Securities Exchange (NSE), recording a 0.4% drop from its previous closing price of KSh 11.30.
In its most recent financials, Co-op Bank Group’s balance sheet increased to KSh 661.3 billion in Q3 2023 compared to KSh 622.1 billion at the end of September 2022. Its net loans and advances increased to KSh 378.1 billion in Q3 2023 from KSh 335.2 billion in Q3 2022 while customer deposits increased to KSh 432.8 billion from KSh 432 billion at the end of Q3 2022.
- •Total shareholders ‘funds, what owners of the lender would be paid were the institution be placed under liquidation, reached KSh 108.1 billion in Q3 2023 from KSh 100.9 billion in Q3 2022.
- •Total interest income from loans, government securities, and deposits with other banking institutions increased to KSh 49.4 billion in Q3 2023 from KSh 43.7 billion in Q3 2022 while total interest expense increased to KSh 16.5 billion from KSh 11.7 billion in Q3 2022.
The lender’s non-interest income from fees and commissions on loans, foreign exchange trading, and other incomes increased to KSh 20.6 billion in Q3 2023 from KSh 20.2 billion at the end of the third quarter in 2022.
- •The bank cut its loan loss provisions to KSh 4.2 billion in Q3 2023 from KSh 5.7 billion in Q3 2022 while staff costs rose to KSh 12.2 billion from KSh 10.8 billion in Q3 2022.
- •Its non-performing loans portfolio increased from KSh 51.8 billion in Q3 2022 to KSh 61.9 billion at the end of September 2023.
Its shares began the year with a share price of KSh 12.30 but has since lost 8.54% off that price valuation, ranking it 33rd on the NSE in terms of year-to-date performance. The Group’s subsidiaries include Co-op Consultancy & Insurance Agency Limited, Co-op Trust Investment Services Limited, and Kingdom Securities Limited.
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