GROWTH

Co-op bank full-year profits up 53% on Covid-19 recovery

This is the best performance in the bank's history spanning almost 60 years

In Summary
  • The bank's gross earnings grew by 59 per cent to Sh22.6 billion from Sh14.3 billion.
  • Total Assets grew eight per cent during the year to Sh579.8 billion from Sh536.9 billion in the year 2020. 
Co-operative bank managing director Gideon Muriuki during the release of the Bank Q3 financial report in Nairobi.
Coop Bank Group MD Dr. GEDION Muriuki at a past event. Co-operative bank managing director Gideon Muriuki during the release of the Bank Q3 financial report in Nairobi.
Image: ENOS TECHE

The post-Covid-19 economic recovery led to high credit demand pushing up Cooperative Bank Group's net earnings for the year ended December 31, 2021, by 52.7 per cent.

The bank's financial results released Thursday shows it reported a  profit after tax of Sh16.5 billion compared to Sh10.8 billion the previous year. 

"This is the best performance ever by the bank in line with the group’s strategic focus on sustainable growth and transformation,'' Co-op Bank Group MD Gideon Muriuki said. 

The bank's gross earnings grew by 59 per cent to Sh22.6 billion from Sh14.3 billion.

The improved profits saw shareholders’ funds grow to Sh100.2 billion, 10 per cent from Sh90.7 billion in 2020 enabling the lender to continue pitching for big-ticket deals.

Net loans and advances book grew to Sh310.2 billion, an eight per cent growth from Sh286.6 billion in year 2020.

Furthermore, customer deposits grew to Sh407.7 billion, an eight per cent growth from Sh378.6 billion.

The lender's total operating income grew by 12 per cent from Sh53.8 billion to Sh60.4 billion. Total non-interest income grew by 11 per cent from Sh17.5 billion to Sh19.4 billion.

Net interest income grew by 13 per cent from Sh36.3 billion to Sh41 billion. Total operating expenses improved by three per cent from Sh39.4 billion to Sh38.1 billion.

Co-op Bank affirmed its position as the third-biggest lender in terms of asset value, coming behind Equity Bank and KCB Group which have already crossed the Sh1 trillion line. 

Total Assets grew eight per cent during the year to Sh579.8 billion from Sh536.9 billion in the year 2020. 

On Wednesday, KCB Group reported a balance sheet growth of 15.4 per cent to Sh1.139 trillion, driven by organic growth across the businesses and the acquisition of BPR.

The Group prudentially provided Sh7.9 billion in loan loss provisions compared to Sh8.1 billion provided in 2020 indicating improving quality of our asset book as businesses and households continue to recover from the impact of the Covid-19 pandemic.