Co-operative Bank Headquarters in Nairobi [Photo/standardmedia.co.ke]The Co-operative Bank has announced a net profit of Sh9.5 billion for the third quarter period ended September 30.
This translates to a 9.5% loss compared to Sh10.5 billion the bank posted 2016.Co-operative Bank, during the mentioned quarter, was able to grow its loan book to Sh259.4 billion from Sh227 billion recorded in last year.This, however, did little to boost the bank’s total interest income which declined by 7.7 percent to Sh29.9 billion.In another record, the bank’s operating expenses also rose to Sh17.25 billion while operating income dropped by 4.3 percent to Sh30.9 billion.This has seen Co-Operative Bank embark on a strategy to diversify its income as it adjusts to the interest cap regime.“The Co-operative Bank group is alive to both the challenges presented by the operating environment and also the wide opportunities offered by Kenya’s growing economy,” Co-Operative Bank Group chief executive officer Gideon Muriuki said in a statement.According to the bank's financial reports, the lender was also able to make a Sh30 million profit from its South Sudan operations despite the market presenting a tough operating environment.Co-operative Bank was able to move 86 percent of its customer transactions to alternative delivery channels particularly mobile banking, ATMs, internet and agency outlets.This comes ad banks are increasingly leveraging on financial technology.“We continue with our focus on the digital bank which will ensure timely, business-led solutions delivery to our customers,” Mr. Muriuki said.