Co-op Bank of Kenya has recorded a marginal 3% increase in half-year profits to KSh 7.4 Billion compared to net earnings of KSh 7.2 Billion over a similar period last year.
This is as the lender made huge provisions for loan losses, with net non-performing loans rising sharply from KSh 15.6 Billion in H1, 2020 to KSh 18.6 Billion at the end of the first six months of this year.
Co-op Bank of Kenya loan loss provision increased steeply to KSh 25.5 Billion at the end of H1, 2021, compared to KSh 13.1 Billion over a similar period last year.
According to the Group’s unaudited financial statements for the half-year period ending 30th June 2021, Gross Non-performing loans bulged to KSh 50.8 Billion in the first half of this year compared to KSh 34.3 Billion in H1, 2020.
Co-op Bank of Kenya has riden on an expanding loan book
The lender benefited from an expanding loan book which hit KSh 301.2 Billion in H1, 2021 from KSh 272.2 Billion over a similar period last year.
Net Interest Income also increased significantly from KSh 15.9 Billion in H1, 2020 to KSh 18.8 Billion at the end of H1, 2021.
Fees and Commissions from loans to customers rose sharply from KSh 614.2 Million in the first half of 2020 to KSh 2.7 Billion at the end of six months of 2021.
The lender’s balance sheet size also grew from KSh 513.9 Billion to KSh 573 Billion over the period under review.
Total Shareholders Funds, which indicate what owners of Co-op Bank of Kenya will get were the institution to go bankrupt, at KSh 92.6 Billion up from KSh 80.1 Billion at the end of H1, 2020.
Customer deposits increased to KSh 407.7 Billion at the end of the first six months of this year compared to KSh 384.6 Billion in H1, 2020.
C0-op Bank of Kenya borrowing levels almost doubled to KSh 44.4 Billion in the first half of 2021 from KSh 25.6 Billion in H1, 2020.
Total operating income was up from KSh 24.2 Billion to KSh 29.2 Billion during the period under consideration.
Co-Op Bank of Kenya tax before profit was KSh 10.5 Billion in H1, 2021 compared to KSh 9.6 Billion over a similar period in 2020.
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