Co-op Bank net profits hit Sh16.5b
Co-operative Bank Group reported a net profit of Sh16.5 billion in 2021 compared to Sh10.8 billion in 2020.
This represents a Sh5.7 billion increase in net profits from Sh10.8 billion posted the previous year on increased appetite for loans, after the economy started to recover from pandemic knocks.
According to the lender’s financial results released Thursday, recovery of the local financial sector continued with customer deposits growing by 8 per cent growth to Sh407.7 billion.
The lender which owns Kingdom says the new subsidiary gross profits hit Sh512 million while Co-op Consultancy & Bancassurance Intermediary posted Sh803.9 million a profit before tax.
“This is the best performance ever by the bank in line with the group’s strategic focus on sustainable growth and transformation,’’ Cooperative Bank managing director Gideon Muriuki said.
Improved profits saw shareholders’ funds soar to Sh100.2 billion from Sh90.7 billion in 2020, in a move that enabled the lender to pitch for big-ticket deals.
During that period, recovery from Covid-19 shocks saw the company’s loan loss provisions drop to Sh7.9 billion from Sh8.1 billion in 2020, due to improvement in quality of the asset book.
Net loans and advances
Further, books for net loans and advances for the period under review expanded to Sh310.2 billion from Sh286.6 billion the previous year.
The bank’s gross earnings also witnessed a growth of 59 per cent to Sh22.6 billion from Sh14.3 billion in 2020.
This impressive results propelled the lender to pronounce a Sh1.00 dividend payoff to its shareholders estimated at Sh5.9 billion.
“The board of directors has recommended subject to shareholders’ approval at the next AGM on 29th May 2022, a dividend payment of Sh1.00 per share amounting to Sh5.9 billion in payment,” said Co-op.
The lender’s total operating income grew by 12 per cent from Sh53.8 billion to Sh60.4 billion as the total non-interest income grew by 11 per cent from Sh17.5 billion to Sh19.4 billion.
Net interest income grew by 13 per cent from Sh36.3 billion to Sh41 billion while Total operating expenses improved by three per cent from Sh39.4 billion to Sh38.1 billion.
Growing asset base
In total, the group’s total assets grew to Sh579.8 billion from Sh536.9 billion recorded in 2020.
In the review period the lender increased its investment into the government securities by 14 per cent to Sh184.1 billion.
The lender borrowed 42.9 billion funds from development partners compared to Sh46.0 billion in 2020.
“Through our multi-channel strategy, the bank has successfully moved 94 per cent of all customer transactions to alternative delivery channels,” said Co-op Bank.
