Bank records a 9.5 percent rise in net interest income to Sh30.8 billion, offsetting a Sh600 million fall in non-funded income
Its holdings of government securities went up by 16 percent or Sh11 billion to stand at Sh80.24 billion during the year
Its loan book shrunk by Sh8.5 billion to Sh245.4 billion.
Cooperative Bank #ticker:COOP has reported an 11.6 percent rise in net profit to Sh12.7 billion for the year ended December 2018 on higher interest income and a cut in loan loss provisions.
The top-tier lender cut its loan loss provision by half to Sh1.84 billion even as non-performing loans rose by 56.7 per cent or Sh10.6 billion to Sh29.4 billion.
Cooperative recorded a 9.5 percent rise in net interest income to Sh30.8 billion, offsetting a Sh600 million fall in non-funded income which stood at Sh12.9 billion.
The fall in non-funded income was largely due to lower fees and commissions on customer loans, as the lender increased its lending to government while cutting its loans to customers.
Government securities
Its holdings of government securities went up by 16 percent or Sh11 billion to stand at Sh80.24 billion during the year, while its loan book shrunk by Sh8.5 billion to Sh245.4 billion.
The bank will pay its shareholders a dividend of Sh1 per share, compared with the 80 cents paid out in 2017.
Cooperative’s performance mirrors that of KCB, #ticker:KCB, which grew its 2018 net earnings by 22 percent to Sh24 billion on the back of lower loan loss provisions and higher interest income while non-funded income remained flat.
Fellow top tier lender Barclays Kenya #ticker:BBK on the other hand grew its net earnings by seven percent to Sh7.47 billion due to higher non-funded income.
Its net interest income remained flat and its loan loss provisions went up, revealing the different strategies banks are using to grow their bottom line.
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