This archive report was first published on 21 May 2020.
As the COVID-19 pandemic continues to affect the economy, Co-operative Bank Group has taken steps to restructure loans totalling Ksh 15.3 billion, representing 5.5% of its total loan book.
This move comes as the lender recorded a Profit After Tax of Ksh 3.6 billion in the first quarter ending March 31, 2020.
Group Chief Executive Officer Gideon Muriuki attributed the growth to a rise in non-interest income, which surged 19% to Ksh 5 billion, as well as increased transactions on alternative channels.
According to KBC, loan negotiations included customers requiring an interest moratorium period, customers requiring a better structure/longer repayment period, and customers requiring additional funding to manage the crisis.
During the first quarter, the bank added Ksh 24.5 billion to its loan book, standing at Ksh 276.2 billion, representing a 9.8% growth.
Mobile loans through its M-Coop Cash advanced loans totalling Ksh 16 billion during the period.
On the other hand, customer deposits grew by 6.9% to Ksh 339.6 billion.
The bank's planned acquisition of Jamii Bora Bank, okayed by shareholders in March this year, will offer it the opportunity to cross-sell and deepen product offerings to the enhanced customer base.
