The Co-operative Bank of Kenya has posted a 65.7 per cent rise in profits through the first three months of 2022 to Ksh.5.8 billion from Ksh.3.5 billion.
The rise in the lender’s profitability is largely attributable to higher income in the period with the bank’s total operating income hitting Ksh.16.8 billion at the end of March from Ksh.14.4 billion previously.
The 16.7 per cent jump in income is anchored mostly on a 42 per cent jump in non-interest funded income to Ksh.6.4 billion from Ksh.4.5 billion.
Co-op’s net interest income has meanwhile grown by 6.1 per cent to Ksh.10.4 billion from Ksh.9.8 billion in the same period.
At the same time, the Co-operative Bank has held off higher costs as interest expenses hold unchanged at Ksh.3.6 billion while non-interest expenses have fallen by a marginal 3.2 per cent to Ksh.9 billion.
The lower costs are on the back of lower loan-loss provisioning costs which eased to Ksh.1.5 billion from Ksh.2. 3 billion.
The lower cover comes as the bank’s gross non-performing loans (NPLs) fall to Ksh.49.5 billion from Ksh.52 billion pointing to an improving asset quality for the lender.
During the quarter, Co-op’s net loans and advances to customers have risen by 8.8 per cent to Ksh.324.5 billion from Ksh.298.2 billion in March 2021.
Meanwhile, the bank’s customer deposits have expanded by 4.3 per cent in the three months to Ksh.410.8 billion.