, NAIROBI, Kenya, May 15 – Co-operative bank has recorded a 5.6 percent decrease in net profit for the first quarter of 2014 to Sh2.46 billion from Sh2.61 billion recorded same period last year.
The decline was as a result of a reversion of tax rate to 30 percent from 20 percent following lapse of a five year break offered as an incentive for listing.
Profit before tax however increased by 7.5 percent to hit Sh3.47 billion for the quarter ending 31st March 2014 compared to Sh3.23 billion recorded for the same period in 2013.
Staff costs increased by 24 percent from Sh1.52 billion recorded in 2013 to Sh1.89 billion while total customer deposits increased by 15.4 percent to Sh187.2 billion compared to Sh162.2 billion in 2013.
The bank’s lending portfolio grew by 30 percent from Sh119.1 billion in 2013 to Sh154.6 billion with the bank’s customer base increasing by 39 percent to over 4.4 million accounts.
The bank’s total assets stood at Sh247.3 billion in the period under review representing a 20.5 percent growth from Sh205.3 billion registered over the same period in 2013.
The bank secured Sh17 billion forex currency lines from the International Finance Corporation, French Development Agency, European Investment Bank and German Development Bank for on lending to the export oriented client base in the period under review.
Shareholders’ funds closed at Sh40.2 billion from Sh31.5 billion as at the close of 1st quarter 2013 representing a 28 percent growth.
Fees and commissions on loans and advances increased to Sh494.7 million in the period under review compared to Sh361.5 million realised in a similar period last year, representing a 37 percent growth.
The bank opened two additional branches in the period bringing the retail network to 135 branches in Kenya and one in South Sudan.