Co-operative Bank Group has reported a profit before tax of Ksh 14.3 Billion for the 2020 financial year, a 23% reduction compared to Ksh 20.7 Billion shillings , and profit after tax of Ksh 10.9Billion compared to Ksh 14.3Billion in 2019.
In a statement, Co-op Bank Group said the loss in profit is due to increased COVID 19 related loan loss provisions and absorption of currency translation losses in its South Sudan operation.
The Bank’s Group Managing Director and CEO Dr. Gideon Muriuki further said the group has taken loan loss provisions of Ksh 8.1Billion being a 220% increase from Ksh 2.54Billion in 2019 in appreciation of business and household challenges from the ongoing pandemic disruptions.A total of Ksh 49Billion shillings in loans have been restructured to support the customers impacted by the pandemic.
“We continue to actively engage our customers to support them through this period, by re-aligning our servicing of facilities, funding and transaction needs as the situation unfolds,” Dr. Muriuki stated.
As at 31st December 2020, the Group had a balance sheet growth with an asset base of Ksh 537Billion compared to Ksh 457Billion in the same period last year, as it continues to implement proactive enterprise risk management initiatives to ensure uninterrupted business operations.
“This, we have done by, fortifying our digital channels to support uninterrupted access to banking services by customers. In so doing, 92% are now on alternative banking channels.”
“We have also enhanced digitization of internal bank processes and engagement platforms and adopted work-from-home model for safety and wellness of bank teams and ensured safe spaces for staff who continue to serve in physical touch points,” Dr. Muriuki added in the statement.
Meanwhile,customer deposits grew by 13.8%, from Ksh 332.8Billion to Ksh 378.6Billion. Total operating expenses however grew by 41.8% from Ksh 27.8Billion to Ksh 39.4Billion on account of higher loan loss provision.
With the bank’s focus on digital banking on the MCo-op Cash wallet, 5 million customers have been registered with loans worth Ksh 58.5 Billion disbursed in 2020.
Meanwhile, cCo-op Bank subsidiary the Kingdom Bank, with 17 branches has also posted a 73.6 Million loss in 2020 and is expected to turn around its performance in 2021.