Co-operative Bank of Kenya has posted a Sh. 9.54 billion net profit in nine months.
During this period, the bank’s total non-interest income however increased 3.4 per cent to close the period at Sh. 10.14 billion.
This was mostly driven by fees on commissions the bank levied on loans and advances which went up by Sh. 542 million to close the period at Sh. 1.85 billion.
“Co-op Bank is delighted to report…a commendable performance against the backdrop of a tight operating environment…with the capping of interest rates and the general economic slowdown in an election year,” Gideon Muriuki, the bank’s managing director said in a statement Thursday.
Co-op Bank, which is third biggest bank by asset volume in Kenya, recorded a deposit growth of Sh. 31.2 billion in the period to Sh. 288.96 billion.
Co-op also closed the period under review with total assets of Sh. 388.3 billion, representing a growth of 9.7 per cent from Sh. 354 billion in 2016. Its South Sudan branch made a profit of Sh. 30. million.
This performance came amidst challenges facing the local banking sector following a downturn in the economy due to pro-longed electioneering and the capping of interest rates last year.
For instance, interest earned from loans to customers dropped Sh. 1.7 billion to close the third quarter at Sh. 23.6 billion despite the net amount of loans advanced having increased by Sh. 32.3 billion to Sh. 259.4 billion.
“Co-op Bank is alive to both the challenges presented by the operating environment, and also the wide opportunities offered by Kenya’s growing economy. We have put in place strategies to sustain the business on a growth trajectory in the long-term,” said Mr Muriuki.
