Cooperative bank’s profit after tax drops to Sh3.2 billion from Sh3.4b

NAIROBI, KENYA: Cooperative Bank of Kenya has registered a 6.2 per cent drop in profits for the first three months of the year joining the league of major lenders that have seen a drop in profits.

Financial results for the first quarter ended March 31, 2017 show that the bank's net profit was Sh3.2 billion compared to Sh3.4 billion recorded in a similar quarter last year.

In South Sudan where it is in joint venture with Government of South Sudan ,it made a loss of Sh34.7 million in the period under review owing to hyperinflation occasioned by devaluation of the South Sudanese currency.

Despite the drop, the group Managing Director and CEO Gideon Muriuki described the results as "a commendable performance."

"It is commendable against the backdrop of a tighter operating environment especially with the capping of interest rates and currency devaluation and hyperinflation on our operations in South Sudan," said Muriuki.

He added that the group's performance was supported by enhanced efficiency as cost to income (CTI) ratio moved to 47.9 per cent from a 52.1 per cent in a similar quarter last year.

Other lenders who have recorded a drop in profits for the first quarter of 2017 include Kenya Commercial Bank (KCB), NIC Bank and Stanbic Bank.