Co-operative Bank Group has posted a Profit before Tax of Kshs.9.6 Billion for the second quarter of 2020 compared to Kshs.10.44 Billion recorded in the second quarter of 2019.
Profit after tax was Kshs 7.2 Billion compared to Kshs 7.5 Billion in the previous year, a 3.6 per cent reduction. Total non-interest income retreated 5% from Kshs 8.8 Billion to Kshs 8.3 Billion.
The Group has also prudentially taken a higher loan loss provision of Kshs 1.87 Billion for the six months compared to Kshs 1.18 Billion last year, a 57.89% increase in appreciation of the tougher environment occasioned by COVID 19.
Total non-interest income retreated 5% from Kshs 8.8 Billion to Kshs 8.3 Billion.
Net interest income grew by 12% from Kshs 14.3 Billion to Kshs 15.9 Billion.Total operating expenses grew by 16% from Kshs 12.6 Billion to Kshs 14.6 Billion on account of higher loan loss provisions.
In a statement, Group Managing Director Gideon Muriuki said the strong performance is an affirmation of the resilience of the business in view of the most challenging operating environment due to the pandemic that has brought about unprecedented economic and social disruption globally.
Total assets grew by Kshs 84.3 Billion (+20%) to Kshs. 513.9 Billion compared to Kshs 429.6 Billion in the same period last year. Net loans and advances book grew by Kshs 14.6 Billion (+6%) from Kshs.257.6 Billion to Kshs. 272.2 Billion.
Meanwhile, Co-operative Bank of South Sudan also made a Profit before tax of Kshs 102.6 Million in quarter 2 of 2020, while Co-op Consultancy and Insurance Agency posted a Profit before tax of Kshs 387.8 Million as at 30 June 2020.
And with the Covid 19 crisis, the Bank says it has proactively engaged all the customers and reviewed their requests for an an interest moratorium period,those requiring a better structure/longer repayment period, and those t requiring additional funding to manage the crisis.
In total, a portfolio of over Kshs. 39.2 Billion has been re-aligned to offer Coop bank customers this much-needed support.