Co-operative Bank of Kenya has posted a net profit of Sh11.6 billion in the nine months period ending September 30th, 2021.
This is an improvement of 18.4 per cent compared to net earnings of Sh9.8 billion over a similar period last year.
The lender’s earnings were attributed by an increase in loans to customers as well as an improvement in customer deposits.
Co-op has raised its cover for loan defaults across the period with the loan-loss provisioning costs jumping to Sh6 billion from Sh4 billion in September 2020.
The lender’s net NPL exposure declined significantly to Sh204.9 million in third quarter 2021 from Sh6 billion in third quarter, 2020.
The rise in the default’s cover has seen non-interest expenses rise to Sh28 billion from Sh23.5 billion last year.
Net loans and advances to customers have grown by 7.8 per cent to Sh306.3 billion as Co-op’s total assets hit Sh592.9 billion.
Profitability of the lender, as measured by the Basic Earnings per Share(EPS) improved to Sh1.98 in Q3, 2021 from Sh1.67 in Q3, 2020.
Co-op’s subsidiary Kingdom Bank has remained profitable in the period posting earnings of Sh413.1 million.
Kingdom’s core capital remains adequate at Sh1.2 billion while the unit’s liquidity ratio is more pronounced at 380.6 per cent.
The performance of the recent acquisition has been similarly anchored on higher operating income which stood at Sh2.5 billion in the period.