The Co-operative Bank has released its 2017 quarter one financial results.
During the period, the bank made a net profit of Sh. 3.2 billion. The profit came in despite effects from the South Sudan market that has seen a spike in inflation and currency devaluation. Inflation in South Sudan hit 830 per cent in late 2016.
In the same vein, its currency has shed value to exchange at 108 units to the US dollar. At the beginning of 2016, the South Sudan pound was exchanging at 2.95 units to the US dollar.
During the first quarter, Co-op Bank cut its interest expenses by 28 per cent to Sh. 2.8 billion, cushioning itself against fall in income.
The bank further recorded a 15 per cent or Sh. 32 billion growth in its loan book to Sh. 245.9 billion during the quarter.
In a statement following the release of the results, Co-op Bank CEO Gideon Muriuki said the bank had put up a brave performance given the current harsh environment facing the banking sector. “It is a commendable performance against the backdrop of a tighter operating environment especially with the capping of interest rates and currency devaluation and hyperinflation on our operations in South Sudan,” he said.
