Co-operative Bank’s net earnings for the nine months ending September grew 47 per cent on effective cost management.
In the review period, the bank’s net profit stood at Sh17billion, an increase from Sh11.6billion in the previous year.
According to the bank’s financial results unveiled today, the performance delivered a competitive Return on Equity of 23 per cent to their shareholders.
The lender’s gross earnings for the period under review rose to Sh22.7 billion, a commendable 38 per cent growth compared to Sh16.5 billion recorded in the third quarter of 2021.
“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility,” Co-op Bank Group Managing Director, Gedion Muriuki said.
The lender’s Cost-to-Income ratio improved from 49.3 percent to 45.8 per cent while customer deposits grew to Sh432 billion, a three per cent increase from Sh420.4 billion.
External funds from development partners stood at Sh41.9 billion from Sh43.8 billion in the same period last year.
Shareholders’ funds increased to Sh100.9 billion, a 6.2 per cent increase from Sh95 billion in 2021.
Additionally, net loans and advances grew to Sh335.2 billion, a 9.4 per cent growth from Sh306.3 billion in 2021 and total operating income grew by 17.6 per cent from Sh44.4 billion to Sh52.2 billion.
Non-interest income grew by 28.3 per cent from Sh15.7 billion to Sh20.2 billion, while the net interest income grew by 11.7 per cent from Sh28.7 billion to Sh32 billion.
Operating expenses increased by six per cent from Sh28 billion to Sh29.6 billion.
