NAIROBI, Kenya, Nov 9 – The Co-operative Bank has posted a net profit of Sh9.5 billion for the third quarter of 2017, which is a decline from the Sh10.5 billion recorded last year.
The top tier bank says a tight operating environment, especially with the capping of interest rates and the general economic slowdown in an election year, has slowed down the performance compared to same period last year.
Total assets, however, grew by 9.7 percent to Sh388.3 billion compared to Sh354 billion in 2016.
Net loans and advances book grew by Sh32.4 billion to Sh289 billion compared to Sh257.8 billion in last year’s period.
Customer deposits on the other hand grew by Sh31.2 billion to Sh289 billion, up from Sh257.8 billion.
Shareholder’s fund grew to Sh67.3 billion, supported by a steady growth in earnings retention and a dividend policy anchored on progressive growth.
Co-operative Bank of South Sudan that has a partnership with Government of South Sudan (Co-op Bank 51 percent and GOSS 49 percent) made a profit of Sh30 Million in the period.
“The Group has a sustained focus on long-term profitability, with current challenges in the operating environment being mitigated by the benefits arising from the successful execution of the ‘Soaring Eagle’ Transformation project with critical focus on improved operational efficiencies, customer service and lower operating costs,” Group CEO and MD Dr Gideon Muriuki said in a statement.
Overall, the Bank’s cost to income ratio improved from 52.1 percent in the 2016 financial year to 47.6 percent in this year’s third quarter.