The Co-operative Bank of Kenya has recorded a growth in its profit after tax to Sh6.1 billion in the three months to March 2023 on account of rising interest and non-interest incomes.
The lender’s profit increased by 5.2 percent for Sh5.8 billion, which was recorded in a similar period last year. Increased income was attributed to high interest and non-interest income, which includes commissions and fees.
While non-interest income grew by 10.8 percent to 7.1 billion, interest income grew by 3.9 percent to 10.8 billion.
“Co-op Bank Group is pleased to report a Profit Before Tax of Kshs. 8.15 Billion for the first quarter of 2023, representing a 4.67% growth compared to Kshs. 7.78 Billion recorded in the first quarter of 2022,” Co-op Bank CEO Gideon Muriuki said.
“This represents a Profit after Tax of Kshs. 6.1 Billion compared to Kshs. 5.8 Billion reported in 2022, a 5.2% growth,” Muriuki added.
“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.”
Likewise, operating expenses went up by 8.8 percent from Sh9 billion to Sh9.8 billion.
After KCB and Equity Bank, Co-op Bank is the third-largest tier-1 financial institution in the country.
It mostly lends to Saccos, who form part of its biggest owners.
“The Group reports considerable efficiency gains from the various initiatives to record a Cost-to-Income Ratio of 46.3% in Q12023, a remarkable improvement from 59% in FY2014 when we began our Growth & Efficiency journey.”