Co-operative Bank records increase in half-year profit after tax to Sh12.1 billion

Co-operative Bank of Kenya has posted a 5.8 per cent post-tax profit growth in the half year ended June to Sh12.1 billion compared to Sh11.4 billion it posted in the same period last year.

During the period in review, Co-op’s interest expenses also increased significantly as compared to its income raked in from lending and non-lending sources.

The bank’s total interest income went up by 11.9 percent to Sh31.9 billion during the first six months of 2023 backed by a 10.7 percent loan book expansion to Sh365.3 billion.

The period saw Co-op bank’s interest income also grow significantly due to an increase in its investments in government securities to Sh188.4 billion from Sh183.1 billion last year.

The Kenyan lender’s non-interest income increased by 3.9 percent to Sh13.8 billion, majorly contributed to by transactions made on MCo-op Cash, the bank’s mobile money platform.

The bank disbursed Sh41.3 billion in loans through the mobile wallet, which is operated by Co-operative Bank and has registered five million customers.

The bank’s interest expenses increased by 38.9 percent to Sh10.4 billion as customer deposits also grew amid rising interest rates on fixed deposits and a number of assets.

Customer deposits also grew by 8.8 per cent to Sh463.8 billion, as its profit after tax from Kingdom Bank, in which it has 90 per cent stakes, went up by 28.6 per cent Sh521.9 million.

Speaking on the bank’s stellar performance, Co-op Bank CEO Gideon Muriuki said the results match the Group’s strategy that focuses on sustainable growth, resilience and agility.

“The group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors,” said Muriuki.