Categories
Business

Cooperative bank shrugs off post covid 19 to post kshs 18.5B profit

By James Wafula in Nairobi.

Kenya’s Cooperative Bank has defied post Covid -19 economic hardships to post impressive gains in a widely challenging local and regional market building on its digital platform gains.

The lender it was noted had faired well in the  post-Covid-19 economic recovery which led to high credit demand pushing up Cooperative Bank Group’s net earnings for the year ended December 31, 2021, by 52.7 per cent.

The bank’s financial results released this month shows it reported a  profit after tax of Sh16.5 billion compared to Sh10.8 billion the previous year.

“This is the best performance ever by the bank in line with the group’s strategic focus on sustainable growth and transformation,” Co-op Bank Group MD Gideon Muriuki said. The bank’s gross earnings grew by 59 per cent to Sh22.6 billion from Sh14.3 billion.

The improved profits saw shareholders’ funds grow to Sh100.2 billion, 10 per cent from Sh90.7 billion in 2020 enabling the lender to continue pitching for big-ticket deals.

Net loans and advances book grew to Sh310.2 billion, an eight per cent growth from Sh286.6 billion in year 2020.

Furthermore, customer deposits grew to Sh407.7 billion, an eight per cent growth from Sh378.6 billion.

The lender’s total operating income grew by 12 per cent from Sh53.8 billion to Sh60.4 billion. Total non-interest income grew by 11 per cent from Sh17.5 billion to Sh19.4 billion.

Net interest income grew by 13 per cent from Sh36.3 billion to Sh41 billion. Total operating expenses improved by three per cent from Sh39.4 billion to Sh38.1 billion.

Co-op Bank affirmed its position as the third-biggest lender in terms of asset value, coming behind Equity Bank and KCB Group which have already crossed the Sh1 trillion line.

Total Assets grew eight per cent during the year to Sh579.8 billion from Sh536.9 billion in the year 2020■

Leave a Reply

Your email address will not be published.