Co-op Bank Q3 profit up on lower running costs

Co-op Bank Q3 profit up on lower running costs
Co-op Bank Q3 profit up on lower running costs

Africa-Press – Kenya. Co-op Bank’s net earnings for the nine months to September 2022 grew 47 per cent to Sh17.1 billion on effective cost management.

According to the bank’s financial results unveiled Thursday, the performance delivered a competitive Return on Equity of 23 per cent to shareholders.

The lender’s gross earnings for the period under review rose to Sh22.7 billion, a commendable 38 per cent growth compared to Sh16.5 billion recorded in the third quarter of 2021.

“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility,” Co-op Bank Group MD Gedion Muriuki said.

He said the excellent gains from various initiatives saw the lender deliver a Cost to Income ratio of 45.8 per cent in Q3, 2022 from 59 per cent in FY2014 when it embarked on growth and efficiency journey.

Customer deposits grew to Sh432 billion, a three per cent increase from Sh420.4 billion.

External funds from development partners stood at Sh41.9 billion from Sh43.8 billion in the same period last year.

Shareholders’ funds grew to Sh100.9 billion, a 6.2 per cent increase from Sh95 billion in 2021.

Total Assets grew to Sh622.1 billion, a five per cent growth from Sh592.9 billion in the same period last year.

Net loans and advances grew to Sh335.2 billion, a 9.4 per cent growth from Sh306.3 billion in 2021.

Total operating income grew by 17.6 per cent from Sh44.4 billion to Sh52.2 billion.

Non-interest income grew by 28.3 per cent from Sh15.7 billion to Sh20.2 billion, while the net interest income grew by 11.7 per cent from Sh28.7 billion to Sh32 billion.

Operating expenses increased by six per cent from Sh28 billion to Sh29.6 billion.

Meanwhile, Coop Bank remains the top contributor, so far, to President Wiliam Ruto’s anti hunger fundraising appeal.

The lender has extended a contribution of Sh150 million to the fund, the largest donation so far.

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