{"id":17885,"date":"2020-11-20T20:42:38","date_gmt":"2020-11-20T20:42:38","guid":{"rendered":"https:\/\/www.africa-press.com\/kenya\/?p=17885"},"modified":"2020-11-20T20:42:38","modified_gmt":"2020-11-20T20:42:38","slug":"co-op-bank-profit-cut-by-loans-cover","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover","title":{"rendered":"Co-op Bank profit cut by loans cover"},"content":{"rendered":"

AfricaPress-Kenya:<\/strong> Co-operative Bank of Kenya\u2019s net profits in the first nine months of 2020 have dropped by 10 per cent due to the adverse effects of Covid-19.<\/p>\n

The lender made a profit after tax of Sh9.8 billion compared to Sh10.9 billion at the same time last year, a blissful period for the banking sector before the pandemic depressed the economy.<\/p>\n

However, a 90 per cent increase in loan loss provisioning in the third quarter of this year has eaten into the bank\u2019s bottom line despite a slight expansion in its loan book.<\/p>\n

Co-op Bank Managing Director Gideon Muriuki said the increase in loan loss provisioning was a result of the challenges that businesses and households are grappling with from the disruption occasioned by the ongoing pandemic.<\/p>\n

\u201cWe continue to actively engage our customers to support them through this period by re-aligning the servicing of facilities, funding and transactional needs as the situation unfolds,\u201d he said.<\/p>\n

The bank restructured loans valued at Sh46 billion by the end of the third quarter in what was aimed at giving relief to customers negatively impacted by the pandemic.<\/p>\n

Mr Muriuki said a net profit of Sh9.77 billion was good at a time when the economy is buffeted by the pandemic.<\/p>\n

Among the four Tier One banks that have so far released their financial results, Co-op Bank has had the least drop in profitability while Absa Bank had the largest.<\/p>\n

Absa made a net profit of Sh1.9 billion, which was a drop of 65 per cent compared to Sh5.5 billion that it made in the same period last year.<\/p>\n

KCB Bank profits dropped by 43 per cent while Equity Bank\u2019s declined by 14 per cent as the banking sector continued to grapple with a tough business environment that has seen a spike in bad loans.<\/p>\n

The total operating income for Co-op Bank, majority owned by co-operative societies, grew by six per cent from Sh35.2 billion to Sh37.2 billion on the back of increased earnings from loans.<\/p>\n

Fee waiver<\/p>\n

Total interest income, which is earned from loans, increased by 12 per cent to Sh23.6 billion from Sh21.2 billion.<\/p>\n

Non-funded income that comes from fees and commissions declined to Sh13.6 billion from Sh14.1 billion due to waiver of fees on mobile banking and loan restructuring.<\/p>\n

The lender\u2019s total operating expenses grew by 18 per cent from Sh19.8 billion to Sh23.5 billion on account of higher loan loss provision.<\/p>\n

During the period, the publicly listed bank saw its balance sheet expand with total assets growing by Sh70.1 billion – 16 per cent – to Sh510.9 billion compared to last year.<\/p>\n

The growth was mostly due to increased investment in government securities, which grew by half to Sh142.3 billion compared to Sh94.6 billion in 2019.<\/p>\n

dakure@standardmedia.co.ke<\/p>\n","protected":false},"excerpt":{"rendered":"

AfricaPress-Kenya: Co-operative Bank of Kenya\u2019s net profits in the first nine months of 2020 have dropped by 10 per cent due to the adverse effects of Covid-19. The lender made a profit after tax of Sh9.8 billion compared to Sh10.9 billion at the same time last year, a blissful period for the banking sector before […]<\/p>\n","protected":false},"author":84,"featured_media":17878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,8],"tags":[3690,1539,6562],"class_list":["post-17885","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-homepage-english","tag-co-operative-bank","tag-covid-19","tag-gideon-muriuki"],"yoast_head":"\nCo-op Bank profit cut by loans cover - kenya<\/title>\n<meta name=\"description\" content=\"Co-operative Bank of Kenya\u2019s net profits in the first nine months of 2020 have dropped by 10 per cent due to the adverse effects of\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Co-op Bank profit cut by loans cover\" \/>\n<meta property=\"og:description\" content=\"Co-operative Bank of Kenya\u2019s net profits in the first nine months of 2020 have dropped by 10 per cent due to the adverse effects of\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover\" \/>\n<meta property=\"og:site_name\" content=\"kenya\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-20T20:42:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/11\/coop_bank_profit_cu5fb664c629465.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"533\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Co-op Bank profit cut by loans cover\",\"datePublished\":\"2020-11-20T20:42:38+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover\"},\"wordCount\":461,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/kenya\/sites\/28\/2020\/11\/coop_bank_profit_cu5fb664c629465.jpg\",\"keywords\":[\"Co-operative Bank\",\"COVID-19\",\"Gideon Muriuki\"],\"articleSection\":[\"all news\",\"economy\",\"homepage-english\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover\",\"url\":\"https:\/\/www.africa-press.net\/kenya\/economy\/co-op-bank-profit-cut-by-loans-cover\",\"name\":\"Co-op Bank profit cut by loans cover - 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