This archive report was first published on 18 November 2021.
Thursday, November 18, 2021, marked a significant milestone for Co-operative Bank of Kenya as it announced an 18.9% net profit increase in the nine months to September.
The bank's net income in the review period stood at Sh11.6 billion, up from Sh9.7 billion a year earlier, with total interest income rising 21.5% to Sh39.5 billion.
Co-op Bank's loan book and investment in government debt paper expanded, with loans to customers increasing 7.7% to Sh306.3 billion and investment in treasuries rallying 55.5% to Sh193.3 billion.
Notably, Co-op Bank bucked the trend of reduced provisions for bad debt seen among its peers, raising its provisions 50.3% to Sh6 billion as gross defaults increased 23.1% to Sh49.4 billion.
The bank's increased conservatism contributed to its operating expenses rising 19.2% to Sh27.9 billion, while its deposit base rose 11.9% to Sh420.4 billion, leading to interest expenses increasing 22.3% to Sh10.9 billion.
Kingdom Bank, a subsidiary acquired by Co-op Bank in August 2020, made a net profit of Sh413.1 million in the review period, contributing to Co-op Bank's consolidated earnings and marking a rapid turnaround for the small lender.
