Co-op Bank Group says its first half profit increased 10% to Kshs 10.5 billion on account of higher interest income.
Co-op Bank Group CEO Gideon Muriuki says net interest income increased 18% to 18.8 billion while total non-interest income grew 24% to Kshs 10.3 billion.
On the other hand, the total operating expenses grew by 28 percent to Kshs 18.7 billion shillings mainly on account of the lender increasing its loan-loss provisions by 123%.
Muriuki says a total of Kshs 49 billion in loans was restructured during the CBK restructure window that ended on 31st March 2021 to support customers impacted by the pandemic.
“We continue to actively engage our customers to support them through this period, by re-aligning the servicing of facilities, funding and transactional needs as the situation unfolds,” he noted.
“The restructured facilities are largely performing as per the realigned agreements. Our customers continue to show resilience therefore improving their repayment as the economy picks up in various sectors.”
To take care of the harsh economic environment faced by customers during this Covid-19 times, “the Group increased loan loss provisions to Kshs 4.2 billion in the second quarter of year 2021, in appreciation of the challenges that businesses and households continue to face due to the economic effects of the ongoing pandemic.”
During the period under review, Coop Bank increased its net loans and advances by 11% to Kshs 301.2 billion.
Through the lender’s multi-channel strategy, the Bank has successfully moved 93% of all customer transactions to alternative delivery channels, an expanded 24-hour contact centre, mobile banking, 576 ATMs, internet banking and over 25,000 Co-op Kwa Jirani banking terminals.
“Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with 5.2 Million customers registered and loans worth Kshs 33.5 Billion disbursed year-to-date, averaging Kshs 5.6 Billion per month,” said Muriuki.
Kingdom Bank Limited, in which Co-op Bank holds a 90% stake, posted a pretax profit of Kshs 275 million, as compared to 2020 full year loss of Kshs 124 million.
Co-op Consultancy & Insurance Agency made Kshs 433.8 million in pretax profit while Co-op Trust Investment Services posted Kshs 47.9 million in profit before tax.
Co-operative Bank of South Sudan made a monetary loss of Kshs 290 Million attributable to hyperinflation accounting due to currency devaluation of the South Sudanese pound.
As its Corporate Social investment, Co-operative Bank Foundation has so far supported 8,340 students since the inception of the program.
“Co-operative Bank Foundation has provided Scholarships to gifted but needy students from all regions of Kenya. The sponsorship includes; fully paid secondary education, full fees for University education, Internships and career openings for beneficiaries,” the Coop Bank Group CEO said.
Going forward, Muriuki says the group riding on the unique synergies in the over 15 million-member co-operative movement that is the largest in Africa, will continue to pursue strategic initiatives that focus on resilience and growth in the various sectors as the economy continues to recover.