Co-operative Bank Posts Ksh10.31 Billion Profit In Nine Months

The Co-operative Bank Group has reported a profit before tax of Ksh14.65 billion for the for the nine months upto September 30, 2018 compared to Kshs.13.74 Billion recorded in 2017, an impressive growth of 7 per cent. Profit after tax was Ksh10.31 billion compared to Ksh9.54 billion in the previous year, a remarkable 8 per cent growth.

Total interest income improved by 3.5 per cent from Ksh29.85 billion to Ksh30.89 billion on account of; Interest income from government securities increasing by 13.5% from Ksh6.12 billion to Ksh6.95 billion and Interest income from loans & advances increasing by 1% from Ksh23.58 billion to Ksh23.77 billion.

Total interest expense remained tightly controlled, increasing marginally by 1% from Kshs 9.08 billion to Kshs 9.15 billion on account of a 3% growth in deposits.

Total operating income grew by 5% from Kshs 30.91 billion to Kshs 32.32 billion.

Total assets grew by Kshs 15.85 Billion (+4%) to Kshs. 404.15 Billion compared to Kshs 388.30 Billion in the same period last year.

Net loans and advances book declined marginally (-2%) to Kshs. 254.21 billion compared to Kshs. 259.39 billion in the same period last year.

Investment in Government securities grew by Kshs.15.16 billion (+22%) to Kshs. 83.25 billion compared to Kshs. 68.09 billion in 2017.

Total deposits grew by 3% from Kshs. 290.19 billion to Kshs 297.60 billion

Borrowed funds from development partners dropped by Kshs. 2 billion (-7%) to Kshs 25.98 billion compared to Kshs.27.99 billion in the same period the previous year. This was as a result of an instalment payment to the debt provider.

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Shareholders’ funds grew to Kshs. 70.89 billion supported by a steady growth in retained earnings.

The Bank has successfully moved almost 90% of all customer transactions to alternative delivery channels that include Mobile Banking, a 24-hour contact centre, 580 ATMs, Internet Banking and over 11,000 Co-op Kwa Jirani banking agents.

A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group increase the client base to over 7.6 million account-holders across all sectors.

Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with over 3.9 Million customers registered.

Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a remarkable Profit before tax of Kshs 235.12 Million in Q32018 compared to a profit of Kshs 39.15 Million in the corresponding period in 2017.

Co-op Bank Foundation has provided Scholarships for gifted but needy students from all regions of Kenya. The sponsorship includes; fully-paid secondary education, full fees for University education, Internships and career openings for beneficiaries. The foundation is fully funded by the bank and has so far supported 6,331 students since the inception of the program in 2007.

The Group was recognized by the Europe, Middle East and Africa Finance (EMEA Finance) – African Banking Awards 2018 as the Best Bank in Kenya and Best Product Launch in Africa (MCo-op Cash v4.0 update).

The Group was also recognised by Banker Africa East Africa Awards 2018 with three key awards, namely the Best Retail Bank in Kenya, The Best SME Bank in Kenya and the Best Investment Institution in Kenya. This is a re-affirmation of the bank’s unique position as a bank that positively influences the lives of the majority of Kenyan citizens.