NAIROBI, Kenya, Aug 13- Co-Operative Bank Kenya has registered a decline in its half year earnings to hit Sh7.2 billion.
The results are a 4 percent decline compared to Sh7.5 billion it had recorded in a similar period last year.
In a statement, the bank has attributed the slight drop in its earnings to COVID-19 effects that saw an increase in higher loan loss provision.
“The group has prudentially taken a higher loan loss provision of Sh1.87 billion for the six months compared to Sh1.18 billion last year, a 57.89 percent increase in appreciation of a tougher environment,” said CO-OP Group Managing Director and Chief Executive Officer Gideon Muriuki.
Consequently, this saw the lender’s gross earnings shrink marginally to Sh9.6 billion compared to Sh10.4 billion last year.
The lender saw its total operating up by five percent to Sh24.2 billion from Sh.23 billion with net interest income expanding by 12 percent to Ksh.15.9 billion.
Co-Op further saw its higher loan-loss provisions pushing its operating expenses to Sh14.6 billion from Sh12.6 billion last year.
In the period under review the bank saw the expansion of its balance sheet with its loan book stretching by six percent to Sh272.2 billion as customer deposits rose by 19 percent to Sh384.6 billion.
Co-op is expected to finalize on its acquisition of Jamii Bora Bank later this month.
The bank also reported to have offered loan reliefs to customers worth Sh39.2 billion.