A downward pressure on interest income from loans and advances pushed down Cooperative Bank net profit by 9.54 percent to Sh9.53 billion in the nine months ending September 30, 2017 compared to Sh10.54 billion for the same period last year, results released today show.
Net interest margins in Kenya’s banking industry have been falling since an interest capping law came into force in the third quarter last year.
According to the bank’s financial statements forwarded to Nairobi Securities Exchange (NSE), interest income on loans and advances fell 6.9 percent in the period to Sh23.58 billion from Sh25.33 billion while earnings from deposits and placements in other banks fell by 55.9 percent to Sh148 million from Sh337.7 million.
Income from government securities also fell by 8 percent to Sh6.12 billion from Sh6.66 billion.
However, the bank reaped handsomely from fees and commission where income grew by 32.3 percent to Sh1.84 billion from Sh1.39 billion.