Co-operative Bank Of Kenya has posted Ksh. 7.4 Billion in net profit for the half year, this is as compared to net earning of Ksh. 7.2 Billion in a similar period last year.

The increase in profitability was on the back of a 20% increase in the operating income to Ksh. 29.2 Billion. This was driven by an 18% increase in the net interest income to Ksh. 18.8 Billion due to an expanded loan book which rose by 11% to Ksh. 302 Billion. Non-interest income on the other hand grew by 24 percent to Ksh. 10.3 Billion. This was supported by its Mco-op Cash mobile wallet which was disbursing loans valued at about Ksh. 5.6 billion monthly. Fees and Commissions from loans to customers rose sharply to KSh 2.7 Billion.

Operating expenses,  rose by 28% to Ksh. 18.7 Billion majorly due to a 123% growth in provisioning for loan defaults. Loan loss provisioning rose to Sh4.2 billion up from Sh1.9 billion with the bank indicating that it was a reflection of the tough economic environment.

Customer deposits increased to KSh 407.7 Billion at the end of the first six months of this year compared to KSh 384.6 Billion in H1, 2020.

Co-op’s subsidiaries posted improved results, with the 90 percent-owned Kingdom Bank returning Sh275 million net profit. It had booked Sh200.9 million loss in the full year to December. Co-op Consultancy & Insurance Agency returned Sh433.8 million pre-tax profit on increased bancassurance business while that of Co-op Trust Investment Services was Sh47.9 million as funds under management rose by Sh59.1 billion.

On the other hand, the Co-operative Bank of South Sudan returned a monetary loss of Sh290 million due to hyperinflation accounting following the South Sudanese pound devaluation.