Connect with us

Hi, what are you looking for?

File image of Co-operative bank building


Co-Op Bank H1 Earnings down by 4pc to sh7.2bn

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.

Advertisement. Scroll to continue reading.

The bank also reported to have offered loan reliefs to customers worth Sh39.2 billion.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...