This archive report was first published on 18 November 2021.
Co-op Bank of Kenya has posted a significant increase in net earnings, rising to KSh 11.6 billion in the nine months period ending September 30th, 2021, compared to KSh 9.8 billion in the same period last year, representing an improvement of 18.4%.
The lender's earnings were boosted by an increase in loans to customers and an improvement in customer deposits, which contributed to the growth in net earnings.
Co-op Bank Sees Significant Growth in Loans and Deposits ¶
Co-op Bank's net loans to customers increased to KSh 306.3 billion in Q3, 2021, up from KSh 284.2 billion in Q3, 2020, as individual families and businesses, including those in the Co-operatives sector, experienced an accelerated recovery from the effects of the pandemic in the third quarter of 2021.
The lender's balance sheet size also increased to KSh 592.9 billion in Q3, 2021, from KSh 510.9 billion at the end of the third quarter of 2020.
Customer deposits rose to KSh 420.4 billion from KSh 375.5 billion during the period under review.
Income from loans, government securities, and deposits with other banking institutions increased to KSh 39.6 billion in Q3, 2021, from KSh 32.5 billion in the same period last year.
Non-interest income from fees and commissions, forex trading, and dividends, among others, increased to KSh 13.6 billion from KSh 15.7 billion during the period under review.
Loan loss provisions increased to KSh 6 billion from KSh 4 billion, while gross non-performing loans edged up to KSh 48.5 billion in Q3, 2021, from KSh 40.2 billion in Q3, 2020.
The lender's net NPL exposure declined significantly to KSh 204.9 million in Q3, 2021, from KSh 6 billion in Q3, 2020.
Profitability, as measured by basic earnings per share (EPS), improved to KSh 1.98 in Q3, 2021, from KSh 1.67 in Q3, 2020.
