This archive report was first published on 18 November 2021.
Co-op Bank of Kenya has reported a significant improvement in its 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.
This represents an 18.4% increase, driven by an acceleration in loan growth and an improvement in customer deposits.
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 a recovery from the effects of the pandemic.
Co-op Bank's balance sheet size expanded to KSh 592.9 billion in Q3, 2021, from KSh 510.9 billion at the end of the third quarter of 2020, while 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 also increased to KSh 13.6 billion, up from KSh 15.7 billion in the previous year.
However, 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.
Despite this, the lender's net NPL exposure declined significantly to KSh 204.9 million in Q3, 2021, from KSh 6 billion in Q3, 2020.
Profitability improved, with basic earnings per share (EPS) rising to KSh 1.98 in Q3, 2021, from KSh 1.67 in Q3, 2020.
