Home Banking Co-op Bank posts higher third quarter net profit

Co-op Bank posts higher third quarter net profit

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Co-operative Bank has reported an eight percent growth in net profit for the nine months ended September.
The growth was boosted by higher interest income from government securities and lower loan loss provisions.
NSE listed Co-operative’s net earnings for the period rose to Sh10.31 billion from Sh9.54 billion a year earlier, also helped by an improved performance in the third quarter from its South Sudan subsidiary.
“Against the backdrop of a challenging economic environment in the period, profit after tax was Sh10.31 billion compared to Sh9.54 billion in the previous year,” the bank said in a statement on Wednesday.
“Co-operative Bank of South Sudan made a profit before tax of Sh235.12 million in the third quarter of 2018 compared with a profit of Sh39.15 million in the corresponding period in 2017.”
Govt securities
The top-tier bank’s interest income from government securities went up by 13.5 per cent from Sh6.12 billion to Sh6.95 billion in the period, outperforming the growth in interest income from loans and advances to customers, which rose by just one per cent to Sh23.77 billion from Sh23.58 billion last year.
The lender’s loan loss provision fell by half to Sh1.27 billion, easing the pressure on operating expenses even as employee costs rose by Sh885 million or 12.3 per cent to Sh8.1 billion.
Non-funded income rose by four per cent to Sh10.58 billion, while the lender’s total interest expenses rose by one per cent to Sh9.15 billion

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