The Co-operative Bank of Kenya has posted a 55.4 per cent rise in half-year profit to Ksh.11.5 billion from Ksh.7.4 billion.
The growth in profitability for the lender has been supported by improved revenues with total income rising by 17.8 per cent to Ksh.34.4 per cent.
Non-funded income (NFI) has been the greatest driver of income having stretched by 29.1 per cent to Ksh.13.3 billion from Ksh.10.3 billion.
The rise in the non-interest revenue has found anchoring from the bank’s investment in digital channels which has also driven customer transactions out of branches with only six per cent of Co-op customers visiting banking halls.
The switch has further driven gains in cost management, bringing down the Group’s cost to income ratio (CIR) to 46 per cent.
“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.
Co-op’s net interest income has meanwhile improved by 12.2 per cent to Ksh.21.1 billion to keep up with a 9.6 per cent loan book expansion in the period to Ksh.330.1 billion.
The bank has mitigated cost growth flanked primarily by a 21.4 per cent dip in loan-loss provision costs to Ksh.3.3 billion.
The lender has nevertheless 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.