The Co-operative Bank of Kenya has recorded an increase in its interests in the half-year numbers declared having posted a 55.4 percent rise in half-year profit to Ksh.11.5 billion from Ksh.7.4 billion.
The bank has further accrued improved revenues as total income increased by 17.8 percent to 34.4 percent enabling growth in profit for the lender.
Non-funded income (NFI) has been the greatest driver of income having stretched by 29.1 percent to Ksh.13.3 billion from Ksh.10.3 billion.
Co-op’s net interest income has meanwhile improved by 12.2 percent to Ksh.21.1 billion to keep up with a 9.6 percent loan book expansion in the period to Ksh.330.1 billion.
This comes as a motivation to the bank as they pave way for more gains for the consumers as they adopted the digitalized channels as a way of banking hence an increase in customer transactions.
“We have had a key focus on digital banking, with all telco Mco-op Cash mobile wallet continuing to play a pivotal role in the growth of non-funded income with five million customers registered and loans worth Ksh.40.8 billion disbursed in the year to date,” said Co-operative Bank Group Managing Director Gerald Muriuki.
The use of digital channels has seen an increase in cost management as it brought down the Group’s cost-to-income ratio (CIR) to 46 percent since only six percent of Co-op customers visit banking halls.
Co-op Bank has mitigated costs of growth, flanked primarily by a 21.4 percent dip in loan-loss provision costs to Ksh.3.3 billion.
Even though the lender has seen a negligible uptick in gross non-performing loans (NPLs) to Ksh.51.2 billion at the close of June, the board of Co-operative Bank has not recommended the payment of an interim dividend covering the period.
