Co-operative Bank subsidiaries returned a combined profit before tax of 753.9 million in the first quarter of the 2023 financial year.
This performance has underlined the turnaround the bank has injected into the subsidiaries.
A spot check by Bizna Kenya shows that the Co-op Consultancy & Bancassurance Intermediary Ltd posted a profit before tax of Sh. 336.4 million in the first three months of 2023. This profit was largely driven by the strong penetration of the lender’s Bancassurance business.
At the same time, Kingdom Bank Limited which specializes in micro, small and medium enterprises contributed a profit before tax of Sh. 256.3 million in the same period.
In the first quarter period, Co-op Trust Investment Services Ltd contributed Sh. 51.2 million in profit before tax, with Funds Under Management of Sh. 194 billion compared to Sh. 190.2 billion in the same period the previous financial year.
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. 110 million in the first three months of the year.
This performance however translated to a monetary loss of Sh. 71.3 million attributable to hyperinflation accounting that was occasioned by the currency devaluation of the South Sudanese pound.
In this joint venture, Co-op Bank holds a 51 per cent stake while government of South Sudan holds a 49 per cent stake.
The combined profit recorded by these subsidiaries tallied to drive the overall Co-op Bank profit for the first quarter of 2023 to a net of Sh. 6.1 billion.
This represented a growth of 5.2 per cent from the Sh. 5.8 billion overall net profit that Co-op Bank realized in the same period the previous year.
According to Co-operative Bank Group chief executive officer Dr. Gideon Muriuki, the bank group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors.
“This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint and the unique synergies in the over 15-million-member co-operative movement that is the largest in Africa,” says Dr. Muriuki.