The Co-operative Bank of Kenya has been listed among the most favourable banks in Kenya as far as lending rates is concerned.
In the August Weighted Average Lending Rates, the Co-operative Bank was found to be among the most competitive lenders in the country at 15.14%.
Diamond Trust Bank (DTB) at 12.41 per cent, Kingdom Bank (13%) and Consolidated Bank of Kenya (13:40).
Co-operative Bank of Kenya posted a seven percent growth in net profit to Sh12.99 billion in the half year ended June 2024 on increased interest and non-interest income.
The lender’s net earnings grew from Sh12.14 billion posted in a similar period last year.
This was on the back of net interest income growing by 10.7 percent to Sh23.9 billion and non-interest income rising by 11.2 percent to hit Sh15.4 billion.
“The strong performance by the bank is in line with the group’s strategic focus on sustainable growth, resilience, and agility delivering a return on equity of 22.1 percent,” Co-op Bank Managing Director Gideon Muriuki said.
Co-op Bank’s operating expenses for the six months rose by 11 percent to Sh21.3 billion from Sh19 billion on increased provisioning for loan losses and more spending on paying staff.
The provision for loan defaults rose by 4.9 percent to Sh3 billion while staff costs went up by 14.8 percent to Sh9.1 billion.
The rise in staff cost was on the back of pay rises and the hiring of additional staff as the lender expanded its branch network.
