Kenya: Co-operative Bank says first quarter pretax profit jumps 30 percent

The Co-operative Bank of Kenya reported on Wednesday a 30 percent jump in first quarter pretax profit to 4.50 billion shillings ($48 million), helped by a rise in interest income.

The bank, which serves individuals and co-operatives in East Africa's biggest economy, said net interest income rose by a fifth to 5.85 billion shillings in the period to end-March. 

Kenya's economy has expanded steadily, leading to credit growth in the banking sector. Growth, which peaked at 7.1 percent in 2007, was at an estimated 5.3 percent last year.

Basic earnings per share rose to 0.65 shillings from 0.59 shillings a year earlier, said the bank, which also has branches in neighbouring South Sudan and also plans to expand further in the region to Uganda, Tanzania, Rwanda and Ethiopia.

Earlier this year, Co-op forecast annual profits could jump by more than 30 percent in 2015 after job cuts and removal of red tape across its branches.