Co-operative Bank full year profit rises to Ksh.14.3 billion

The Co-operative Bank has posted a 12.6 per cent growth in profit after tax to Ksh.14.3 billion for the year ending on December 31, 2019 on the back of higher fees on loans.

The lender saw its share of non-interest funded income (NFI) rise to Ksh.17.2 billion from Ksh.12.9 billion on the back of a fivefold growth in fees and commissions on customer loans and advances from a switch to higher digital loan issuance.

Net loans and advances to customers during the period however slowed to Ksh.226.7 billion from Ksh.245.4 billion in 2018 as the bank pushed up its investments into government securities by 54.7 per cent to Ksh.76.9 billion.

Customer deposits meanwhile peaked to Ksh.332.8 billion from Ksh.306.1 billion as the bank assets stretched to Ksh.457 billion from Ksh.413.4 billion.

Co-op’s interest income grew marginally to Ksh.43.6 billion from higher revenues off lending to government as interest from loans decelerated to Ksh.31.8 billion from Ksh.32.9 billion.

The bank’s non-performing loans (NPLs) however rose to Ksh.31.6 billion in gross terms from Ksh.29.4 billion across the period to represent a weakening in the lender’s asset quality profile.

Nevertheless, the lender held down its operating expenses as the growth in total costs remained below inflation in the period at 4.6 percent.

The bank is set to retain its dividend pay out to shareholders at Ksh.1 from an improved earnings per share (EPS) performance in the year to Ksh.2.48 from Ksh.2.18.

Born from Kenya’s Cooperative movement, the lender has recently leveraged on the ongoing spate of industry mergers and acquisitions to drive future growth in its expression of interest in tier-three Jamii Bora.