Gideon Muriuki

Co-op Bank quarter one net profit hits Sh3.4bn

The Co-operative Bank #ticker:COOP of Kenya says an increase in lending during the first three months of this year has boosted its profit by 6.25 per cent.

The tier one lender yesterday reported Sh3.4 billion after-tax earnings, up from Sh3.2 billion posted in the same period last year.

This was on the back of 9.25 per cent surge in total interest income to Sh10.38 billion in the period compared to Sh9.51 billion a year earlier.

Co-op Bank recorded a nine per cent growth in net interest income to Sh7.4 billion, with its interest earnings from government securities also rising by 13.4 per cent to Sh2 billion.

The financier attributed the performance to a “gradual economic recovery” from a tough operating environment witnessed last year.

“This is a very commendable performance as the operating environment gradually recovers from the significant headwinds that business had to contend with in the aftermath of the 2017 elections,” said Co-op Bank chief executive Gideon Muriuki in a statement.

Total non-interest income grew by four per cent in the period under review, to Sh3.52 billion compared to Sh3.39 billion in quarter one 2017.

Customer deposits grew 6.5 per cent to Sh299.9 billion, which saw its interest expenses rise five per cent to Sh2.97 billion.

The top tier lender recorded a 2.85 per cent or Sh7 billion growth in its loan book to Sh252.8 billion during the quarter.

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