Co-operative Bank Group net profit after tax has risen by 47.4pc in the third quarter to Ksh 17.1 billion from Ksh 11.6 billion.
Chief Executive Officer Dr Gideon Muriuki attributes the profit growth to a surge in total non-interest income which grew by 28.3pc from Ksh 15.7 billion to Ksh 20.2 billion on account of increase in loans from its digital channels.
“Key focus on digital banking, with the all-telco, Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with 5 million customers registered and loans worth Ksh 62.5 billion disbursed year-to-date, averaging over Ksh 6.9 billion per month,” said Dr Muriuki
During the period under review, net interest income also increased by 11.7pc from Ksh 28.7 billion to Ksh 32 billion on the back of growth of net loans and advances which grew 9.4pc, to Ksh 335.2 billion Ksh 306.3 Billion in 2021.
“Credit Management remains a key focus area that has achieved key milestones. The Group prudentially provided Ksh 5.7 billion compared to Ksh 6 billion provided in 2021, pointing to an improvement in the quality of the asset book,” added Dr Muriuki.
Total assets grew 5pc to Ksh. 622.1 billion compared to Ksh 592.9 billion registered during the same quarter last year.
Co-op Bank also saw its deposits from its 9 million customers grow to Ksh 432 billion from Kshs. 420.4 billion, a 3pc increase as total operating expenses also increased by 6pc from Ksh 28 billion to Ksh 29.6 billion.
The giant lender also saw improvements across its subsidiaries owing to better operating environment.
Co-op Consultancy and Bancassurance Intermediary Ltd posted gross profit of Ksh 772 million backed by strong penetration of Bancassurance business while Co-operative Bank of South Sudan returned to profitability with a net profit of Ksh 190 million compared to a loss of Ksh 104 million recorded during the third quarter of last year.
Kingdom Bank Limited also registered a growth in profit before tax of Ksh. 609.2 million from Ksh 413.1 million reported last year representing a 47pc growth year-on-year.
By Fred Azelwa.