Co op Bank has recorded a profit after tax of Sh21.56 billion for the nine months to September, marking a steady rise from Sh19.21 billion posted in a similar period last year.
The bank has also announced its first interim dividend in its history. Shareholders will receive Sh1 for every share held, a payout that adds up to about Sh5.86 billion.
Co op Bank attributes the strong results to growth in its interest income, a larger customer base, and steady expansion of its loan book.
Interest income rose to Sh45.27 billion from Sh36.87 billion after the bank increased lending and investment in government securities. Operating income went up to Sh67.38 billion, supported by improved earnings from loans and advances.
Non interest income made a slight drop to Sh22.11 billion from Sh22.28 billion. Operating expenses increased to Sh37.72 billion as the bank opened more branches across the country, raising its total network to 217 locations.
The bank also increased loan loss provisions to Sh7.35 billion as part of efforts to manage credit risks in a tough economic environment.
Customer deposits grew to Sh548.57 billion while total assets rose to Sh815.27 billion, reflecting sustained confidence among customers and investors. The loan book expanded to Sh406.52 billion from Sh381.34 billion.
Co op Holdings Co operative Society Limited, the majority shareholder with a stake of 64.56 percent, is expected to receive about Sh3.78 billion from the interim dividend.
Group Managing Director Gideon Muriuki said the decision to issue an interim dividend shows confidence in the bank’s financial strength and future outlook.
