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Saturday, September 19, 2020

Co-op Bank’s net profit soars to Sh. 11 billion in nine months

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Co-op Bank 3rd Quarter Results: The Co-operative Bank Group has posted Sh. 15.45 billion profit before tax for the third quarter of 2019 compared to Sh. 14.64 billion that the bank posted in the same period in 2018. Profit after tax stood at Sh. 10.9 billion compared to Sh. 10.3 billion that was posted the previous year.

During the period, total operating income grew by 9 per cent from Sh. 32.3 billion to Sh. 35.2 billion. Total non-interest income increased by 33 per cent from Sh. 10.6 billion to Sh. 14.1 billion. Interest income from government securities increased by 18 per cent from Sh. 6.9 billion to Sh. 8.2 billion. Total operating expenses grew by 11 per cent from Sh. 17.8 billion to Sh. 17.8 billion on account higher loan loss provision.

How you can make money by becoming a Co-op Bank Agent

“Through our multi-channel strategy, the Bank has successfully moved 89 per cent of all customer transactions to alternative delivery channels that include mobile banking, an expanded 24-hour contact centre, 586 ATMs, internet banking and over 16,000 Co-op Kwa Jirani banking agents,” said Co-op Bank in a statement.

Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan made a profit before tax of Sh. 174.7 million during the period.

“The Group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties, which has progressively deepened our celebrated Financial Inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya,” said Co-op Bank in a statement.

The Group has continued with a strategy for continued deepening and dominance in our domain market segment leveraging on our successful penetration of the Micro, Medium and Small Enterprises and the Saccos, while reviewing opportunities to grow alternative income streams from other services like Bancassurance, and Leasing business being done through Co-op Bank Fleet Africa Leasing Ltd, a strategic joint venture with Super Group of South Africa.

“Our unique model of retail banking services through Sacco FOSAs enabled us provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards,” said Co-op bank.

Co-op Bank 3rd Quarter Results Takeaway highlights:

  • Total assets grew by Kshs 36.6 billion (+9%) to Kshs. 440.8 billion compared to Kshs 404.2 Billion in the same period last year.
  • Net loans and advances book grew by kshs 14.7 billion (+6%) from Kshs.254.2 to Kshs. 268.9 billion.
  • Investment in Government securities grew by Kshs.11.4 billion (+13.7%) to Kshs. 94.6 billion compared to Kshs. 83.2 billion in first three quarters of 2018.
  • Customer deposits grew by 9% from Kshs. 296 billion to Kshs 322.5billion
  • Borrowed funds from development partners grew by Kshs. 3.7 billion (+14%) to Kshs 29.7 billion from Kshs.26 billion in the previous year.
  • Shareholders’ funds grew from Kshs. 70.9 billion to Kshs. 73.9 billion.
  • The bank closed the quarter on a sound capital base, with adjusted total capital against total risk-weighted assets standing at 15.8%, which is 1.3% above the statutory minimum of 14.5%.

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