Co-operative Bank’s profit after tax for the first six months of 2023 grew to Sh12.1 billion compared to Sh11.5 billion reported in the previous year.

Profit before tax stood at Sh16.4 billion for the first six months, a 7.4 per cent growth compared to Sh15.3 billion reported during a similar period in 2022.

“The strong performance by the bank is in line with the group’s strategic focus on sustainable growth, resilience and agility,” Co-op Bank said in a statement. Total assets, net loans and advances, customer deposits, shareholder funds, and external funds from development partners all posted positive growth over the period under review.

Total assets grew by 10.1 per cent to 664.9 billion from Sh603.9 same period in 2022. Net loans and advances grew by 10.7 per cent to Sh365.4 billion from Sh330.1 billion last year. Customer deposits grew by 9.7 per cent to Sh463.9 billion from Sh423 billion in the same period the previous year.

Shareholder funds grew by 11.9 per cent to Sh108.3 billion from Sh96.7 billion in 2022. External funds from development partners increased by a whopping 43.6 per cent to Sh59.4 billion from Sh41.4 billion in 2022.

Net interest income grew by 2.3 per cent while to Sh21.5 billion from Sh21.1 in 2022 while total noninterest income grew by four per cent to Sh13.8 billion from Sh13.3 billion. The bank’s total operating expenses declined marginally to Sh19.2 billion from Sh19.1 billion reported same period in 2022.

The bank said it has made loan loss provisions for Sh2.9 billion, a 71.1 per cent loan loss reserve coverage level. The lender also said it has successfully migrated its core banking system to the latest version of Finance from Infosys, rated the top core banking system in 2022 by Gartner.

“This upgrade is part of our ongoing digitisation journey to enhance service experience and provide the most innovative and advanced banking solutions,” reads the statement in part.

The bank’s Mco-op mobile money wallet continues to drive substantial non-funded income streams for the lender.