Cooperative Bank subsidiary, Kingdom Bank has posted a 58.1 per cent increase in net profit to Sh209.8 million in the first three months of year 2022.
The profit rise from Sh132.7 million has come out of lower operating costs. The bank’s unit overall operating expenses falling 39 per cent to Sh494.8 million.
The bank also saw a drop in loan-loss provisioning by 35.9 per cent to Sh24.9million from Sh388.3 million.
The drop in costs has served to offset a 25.6 per cent dip in the lender’s total operating income which fell to Sh704.6 million from Sh946.9 million.
The falling income came as the Kingdom’s net interest income eased to Sh637.1 million from Sh895.1 million.
A 30 per cent rise in non-interest income to Sh67.5 million however partly contained the income slump.
The falling income has further followed an eight per cent loan book attrition to Sh4.6 billion from Sh5 billion.
The bank’s customer deposits however rose by 23.6 per cent to Sh6.8 billion from Sh5.5 billion.
In March this year, returned to profitability with a net profit of Sh498 million from a profit before tax of Sh512.4 million.
This was the first time the bank was making a full year profit in a period of five financial years.
