Co-op Bank posts Sh3.4bn first quarter profit
The Co-operative Bank group has announced a rise in net profit to Sh3.4 billion for the three months ended March from Sh3.2 billion a year earlier.
The bank attributes the performance to an improved operating environment as well as rolling out of alternative banking channels to reach customers.
During the period under review, the bank’s net loans and advances book grew three percent to Sh252.8 billion compared to Sh245.9 billion in 2017.
This supported total interest income nine percent growth to Sh10.4 billion during the period.
Since the introduction of interest rate capping banks have increased their purchase of government securities.
Co-operative Bank increased its investment in government securities by 24 percent to Sh75 billion that saw interest income from this rise 13.4 percent to Sh2 billion.
During the quarter, total deposits grew to Sh299.9 billion.
Co-operative Bank Group chief executive officer Gideon Muriuki said with financial stability projected for the year, the bank is well set for growth.
“The group will continue to leverage on the growing 7.2 million account-holder base, digital banking focus…and multichannel access to grow market share and deliver enhanced shareholder value in the days ahead,” Mr Muriuki said in a statement.
Last week, Equity Bank announced a 21.7 percent rise in profit to Sh5.9 billion, asserting itself as the industry lead in profitability.
KCB Group announced a 14.1 percent rise in first quarter net profit to Sh5.1 billion while Stanbic Bank posted a Sh1.9 billion first quarter profit.
Banks are this year using the IFRS 9 accounting model that calls for provisions for bad loans by anticipating defaults.
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