Co-perative Bank of Kenya (Coop Bank) has recorded a net profit of Sh7.4 billion in the first half of the year despite an upsurge in bad loans.
This was a marginal increase from Sh7.2 billion that the listed lender made in profit after tax by the end of June 2020.
This even as the bank increased its insurance buffer against possible loan defaults or loan-loss provisions by a record 123 per cent, reflecting increased lending activities that saw it fill up the Sh4.2 billion hole left behind by the increase in the provisions.
By the end of June last year, the lender had set aside Sh1.9 billion as insurance against possible defaults.
Consequently, the lender announced that it had embarked on undertaking aggressive credit risk management aimed at bringing down its fraction of bad loans.