The Co-operative Bank posted KSh 19.21 billion in the 3 months to September, a 4.4% uptick from KSh 18.4 billion recorded in the same period a year earlier.
- The increase was primarily attributed to a 10.8% surge in the total operating income which was however tempered by a faster 12.7% increase in the total operating expenses.
- Net interest income increased by 12.3% to KSh 36.9 billion owing to an increase in interest generated from loans and government securities.
- Gross non performing loans (NPLS) increased by 13.1% to KSh 70 billion, prompting an uptick in the gross NPL ratio to 16.7% – exactly at the industry average of 16.7%.
Total assets grew by 13.5% to KSh 750.8 billion while total liabilities grew by 12.1% to KSh 620 billion. The lender, in response to the surging NPLs, upped their loan loss provisions by 32.5% to KSh 5.6 billion.
- Non funded income saw an 8.2% rise on the back of an increase in foreign exchange trading income.Customer deposits increased 18.7% to KSh 513.9 billion with the loan book expanding mildly by 0.9% to KSh 381.34 billion in the period. Staff costs bulged 10.2% to KSh 13.5 billion in the period, mirroring salary increments and additional employees.
Co-op bank’s South Sudan subsidiary recorded a 22.2% reduction in profit after tax to KSh 33.8 million. In contrast, Kingdom Securities owned by Co-op bank, saw its profits increase 269.7% to KSh 929.2 million.
The lender now boasts 205 branches, with 5 in Sudan as staff members were increased to 5,617 as of September 2024.
Co-operative bank, which is listed at the Nairobi Securities Exchange under the ticker symbol COOP, currently trades at KSh 14.65 – a year-to-date gain of 28.5%. The lender did not declare an interim dividend.
