Kingdom Bank turns profit in the first year under Co-op
Kingdom Bank, formerly Jamii Bora, has churned a profit in its first full year under the Co-operative Bank of Kenya Group.
The bank which was bought out in August of 2020 posted a Ksh.497.8 million full-year profit in 2021 to reverse a Ksh.10.2 million loss previously.
The Co-op subsidiary earnings are anchored on higher-income with total operating income doubling to Ksh.2.8 billion from Ksh.1.4 billion in 2020.
The higher income is premised on rising net interest income which hit Ksh.2.7 billion from Ksh.1.3 billion in the period.
This is despite the Kingdom's net loan book contracting to Ksh.4.4 billion from Ksh.5.6 billion.
Non-funded income (NFI) rose marginally to Ksh.89 million from Ksh.86.8 million.
Income grew ahead of costs where non-interest expenses rose by 77 per cent to Ksh.2.3 billion.
The significant growth in costs is partly attributable to Ksh.168.1 million in new credit loss provisions over the 12 months.
The new loan-loss provisions are nevertheless against an improving book quality with gross non-performing loans (NPLs) sliding by 11.8 per cent to Ksh.6 billion from Ksh.6.8 billion.
Co-op paid Ksh.1 billion for the bank where the proceeds were infused into the acquisition as new capital.
Kingdom Bank now meets all of CBK's capital adequacy levels with core capital at Ksh.1.1 billion.
In 2020, the lender had an eroded financing base with core capital at Ksh.529.5 million, Ksh.470.5 million shy of the prescribed Ksh.1 billion bare minimum limit.
The bank which was bought out in August of 2020 posted a Ksh.497.8 million full-year profit in 2021 to reverse a Ksh.10.2 million loss previously.
The Co-op subsidiary earnings are anchored on higher-income with total operating income doubling to Ksh.2.8 billion from Ksh.1.4 billion in 2020.
The higher income is premised on rising net interest income which hit Ksh.2.7 billion from Ksh.1.3 billion in the period.
This is despite the Kingdom's net loan book contracting to Ksh.4.4 billion from Ksh.5.6 billion.
Non-funded income (NFI) rose marginally to Ksh.89 million from Ksh.86.8 million.
Income grew ahead of costs where non-interest expenses rose by 77 per cent to Ksh.2.3 billion.
The significant growth in costs is partly attributable to Ksh.168.1 million in new credit loss provisions over the 12 months.
The new loan-loss provisions are nevertheless against an improving book quality with gross non-performing loans (NPLs) sliding by 11.8 per cent to Ksh.6 billion from Ksh.6.8 billion.
Co-op paid Ksh.1 billion for the bank where the proceeds were infused into the acquisition as new capital.
Kingdom Bank now meets all of CBK's capital adequacy levels with core capital at Ksh.1.1 billion.
In 2020, the lender had an eroded financing base with core capital at Ksh.529.5 million, Ksh.470.5 million shy of the prescribed Ksh.1 billion bare minimum limit.
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