Cooperative Bank’s net profit in the third quarter of 2020 dropped by 10% to KSh9.8 billion from KSh10.9 billion a year earlier, mainly driven by a sharp rise in loan loss provisions and a drop in non-interest income. It is the third listed bank to report a decline in Q3 Net profit, after KCB Group and Absa Kenya.
Loan loss provisions jumped by 89% to KSh4.0 billion from KSh2.1 billion in September 2019. The bank’s interest income grew by 7% to KSh32.5 billion while non-interest income fell by 3.5% to KSh 13.6 billion.
Coop bank’s total non-performing loans in the third quarter expanded to KSh34.2 billion from KSh24.8 billion, a 37.8% increase. The lender’s total assets increased by 15.9% to KSh510.9 billion while total liabilities increased by 16.9% to KSh427.2 billion
During the period under review, Coop bank completed the acquisition of 90% ownership in Jamii Bora bank.
The bank’s customer deposits improved by 16.4% to KSh 375.5 billion and its loans and advances to customers increased by 5.7% to KSh284.2 billion.