The Co-operative Bank of Kenya a Ksh.3.5 billion billion in the three months ending march 31, 2021, a 2.8 per cent dip as compared to the profits recorded in a similar period in 2021.
The drop was attributed to soaring operating expenses which hit Ksh.9.3 billion, a 27 percent rise from Ksh7.3 billion.
“The group prudentially increased loan loss provisions to Ksh2.3 billion in the first quarter of 2021, in appreciation of the challenges that businesses and households continue to face due to the economic effects of the ongoing pandemic,” said Co-op Bank Managing Director Gideon Muriuki.
Non-interest funded income dipped by nine per cent to Ksh4.5 billion due to fee waivers while net interest income swelled to Ksh9.8 billion from Ksh7.5 billion, a 31 per cent growth.
Net loans and advances grew by eight per cent to Ksh298.2 billion while customer deposits increased by 16 per cent to Ksh393.8 billion.
The lender’s total assets grew by Ksh82.5 billion to Ksh553 billion compared to Ksh470 billion in the same period last year. The growth in assets was partly due to the acquisition of Jamii Bora Bank, now Kingdom Bank.
Kingdom Bank Limited recorded a profit before tax of Ksh126.7 million compared to a Ksh76 million full year loss.
MCo-op cash mobile wallet gained new 5.1 million customers, with loans worth Ksh16.3 billion disbursed in the first quarter.