UPDATE 2-Kenya's Co-op Bank H1 profit up, eyes expansion
* H1 pretax profit jumps 16 pct on interest income
* Focusing on raising revenue from new businesses
* CEO sees licence for branches in Sudan soon
* Shares up 5.2 pct, outperforming local rivals
(Add CEO, analyst comment, shares)
NAIROBI, Aug 19 (Reuters) - Kenya's Co-operative Bank (COOP.NR) posted strong growth in first half profits as its loan book swelled by close to a third, and said it was primed for further expansion beyond its traditional retail banking business.
A 25 percent rise in interest income pushed pretax profit to 1.94 billion shillings ($25.4 million) from 1.67 billion in the first six months of last year, Co-op Bank, Kenya's fourth largest by assets, said in a statement on Wednesday.
Co-op Bank was hoping for an even better second half, and plans to expand into Sudan and Uganda were well under way, Chief Executive Gideon Muriuki said.
Shares in the bank, which was listed last December, gained 5.2 percent to 9.60 shillings by 1035 GMT, outperforming rivals such as Equity Bank (EQTY.NR) and National Bank (NBK.NR), whose shares fell.
"Sixteen percent (profit growth) was decent enough," said Stephen Gugu, an analyst with Stanbic Investments.
Muriuki said the bank had "sufficiently satisfied the needs of the cooperative movement and we are able to go to other sectors now".
He was focusing on new business lines not dependent on interest income to increase revenue, and the second half of the year was likely to be better than the first, he said, without giving details.
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, as well as a regional expansion drive.
Muriuki said the bank had lodged licence applications for a five-branch network in south Sudan in a joint venture with the southern Sudanese government, and expected permits soon. Plans to move into Uganda were on track. [ID:nLR627260]
The loan book of the bank, which was listed last December, grew 31 percent to 56.7 billion shillings during the first half.
Co-op's costs grew by 6 percent to 3.21 billion shillings as new branches opened, Muriuki said.
(Editing by Daniel Wallis, Gilbert Kreijger, John Stonestreet)
($1=76.35 Kenyan Shilling)
