Kingdom Bank, a subsidiary of the Cooperative Bank of Kenya has posted a 58.1 per cent growth in net profit through the first three months of 2022 to Ksh.209.8 million.
The profit rise from Ksh.132.7 million is largely attributable to lower costs with the unit’s overall operating expenses falling 39 per cent to Ksh.494.8 million.
The lower expenses are partly tied to a 35.9 per cent drop in loan-loss provisioning costs to Ksh.24.9 million from Ksh.388.3 million.
The drop in costs has served to offset a 25.6 per cent dip in the lender’s total operating income which fell to Ksh.704.6 million from Ksh.946.9 million.
The falling income came as the Kingdom’s net interest income eased to Ksh.637.1 million from Ksh.895.1 million.
A 30 per cent rise in non-interest income to Ksh.67.5 million however partly contained the income slump.
The falling income has further followed an eight per cent loan book attrition to Ksh.4.6 billion from Ksh.5 billion.
The bank’s customer deposits however rose by 23.6 per cent to Ksh.6.8 billion from Ksh.5.5 billion.