UPDATE 2-Kenya's Co-op bank Q3 pretax profit up 10 pct

* Total assets up 26 percent to 98.78 billion shillings * Customer deposits up 18 percent to 76.63 billion shillings * Net loans and advances to customers up 24 percent (Adds details)

NAIROBI Nov 13 (Reuters) - Kenya's Co-operative Bank (COOP.NR) said on Friday third-quarter pretax profits rose by 10 percent to 2.85 billion Kenya shillings ($38.18 million).

The bank, Kenya's fourth largest by assets, posted a pretax profit of 2.59 billion shillings in the same July-September period a year ago.

In an unaudited statement published in newspapers, the bank said its total assets increased by 26 percent to 98.78 billion shillings.

Customer deposits rose 18 percent to 76.63 billion shillings, while the bank's holdings of Kenyan government securities increased by 57 percent to 14.24 billion.

Net interest income rose to 4.9 billion shillings from 3.87 billion shillings in the similar period a year before, the bank said.

The bank listed on the Nairobi Stock Exchange last December. It was founded in 1965 as a bank for cooperative societies -- which have a two-thirds stake in the bank.

Co-op has launched a brokerage, a custodial service for equities and mortgage services, and plans to expand regionally.

The bank plans to open five branches in south Sudan in conjunction with the south Sudan government, and intends to set up shop in Uganda.

Its net loans and advances to customers were up 24 percent to 60.47 billion shillings, while net non-performing loans rose to 2.32 billion shillings from 2.1 billion shillings a year before.

The bank's shares closed trade at 8.80 shillings on Thursday, compared with a year-high of 13.50 shillings. (Reporting by George Obulutsa; Editing by Lincoln Feast)