This archive report was first published on 22 May 2020.
Co-operative Bank of Kenya has announced flat profits for the first quarter of 2020, with rising employee costs and loan loss provisions eating into its earnings.
The bank's net profit for the quarter stood at Sh3.58 billion, a slight decrease from Sh3.59 billion in the same period last year.
According to Co-op Group Managing Director Gideon Muriuki, operating expenses grew by 20.6 per cent due to loan loss provision and staff expenses.
Staff costs rose to Sh3.4 billion from Sh2.7 billion, while loan loss provisions nearly doubled from Sh510 million to Sh900 million.
The bank has taken steps to mitigate the impact of the COVID-19 crisis, restructuring loans worth Sh15 billion for struggling borrowers and moving 90 per cent of customer transactions to alternative delivery channels.
Co-op says its income from fees jumped to Sh3.76 billion from Sh2.87 billion, with the all-telco MCo-opCash Mobile Wallet playing a pivotal role in the growth of non-funded income.
The bank had offered to fully acquire Jamii Bora Bank in the latest instance of consolidation in the banking industry.
