Co-op Bank Results 2020: The Co-operative Bank has posted a net profit of Sh. 14.3 billion for the full year ended December 31 2019. This net profit represented a growth of 12.4 per cent from the net profit that the lender posted in the financial year 2018.
During the financial year, the bank’s total non-interest income grew by 33 per cent from Sh. 12.8 billion to Sh. 17.3 billion.
“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 (MSMEs) and the Saccos, while reviewing opportunities to grow alternative income streams,” Co-operative Bank’s chief executive officer Gideon Muriuki said.
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The bank’s M-Coop Cash platform registered commendable growth, with the number of registered customers hitting 4.8 million. This growth saw Co-op disburse loans valued at over Sh. 43.1 billion.
In the same vein, total interest income grew by 1.4 percent to Sh. 43.64 billion while interest income from government securities grew by 16 percent to Sh. 11.35 billion. Investment in government paper grew by 46.8 percent to Sh. 117.8 billion.
Dr. Muriuki also said that over 70,000 customers have taken up its MSMEs loan packages launched in 2018 and has so far disbursed Sh. 8.05 billion of the Sh. 15.2 billion earmarked for the program.
During the year, Co-op’s South Sudan joint venture in which it owns 51 percent stake made a before-tax profit of Sh. 240.6 million.
This performance will now see Co-op Bank shareholders take home an annual final dividend of Sh. 1 per share. Over the past few years, the bank has been returning positive annual results fueled by the implementation of its Soaring Eagle strategy.
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The bank is now expected to acquire Jamii Bora Bank in a growth drive that is expected to solidify its position as one of the leading top banks in the country. “The acquisition of Jamii Bora Bank will offer Co-op Bank the opportunity to cross-sell and deepen product offering to the enhanced customer base, and create a niche bank to offer specialized credit offerings that include MSME banking, microfinance, youth and women banking, asset finance and leasing,” Dr. Muriuki said in the release for the Co-op Bank results 2020.
