Co-operative Bank Group has had another successful financial year after posting impressive profits both before and after-tax.
According to a statement released on Thursday, March 19, the lender recorded a before-tax profit of Ksh20.7 billion for full-year 2019, an increase from Ksh18.2 billion recorded in 2018. Profit after tax was Ksh14.3 Billion compared to Ksh12.7 Billion in the previous year.
The group attributed its success to its strategy of ‘increased dominance’ in Kenya leveraging on its successful penetration of the retail and consumer banking, micro, medium and small enterprises, corporate banking and the co-operative movement.
"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," reads the statement in part.
The group's experienced cumulative growth with different sections posting improved results including an increase in total assets from Ksh413.4 billion to Ksh457 billion.
Customers' deposits grew by 8.7% from Ksh306.12 billion to Ksh332.82 billion while investment in government securities grew by Ksh37.53 billion to Ksh117.80 billion compared to Ksh80.27 billion in 2018.
Shareholders' fund grew to Ksh79.33 billion in 2019 from Ksh69.86 billion in 2018.
The group also made profits from its international ventures including the Co-operative Bank of South Sudan where the lender made a profit before tax of Ksh240.6 Million in 2019.
Jamii Bora Bank takeover
On Wednesday, March 11, the lender reported that its directors approved the progression of discussions with Jamii Bora Bank Limited, which if successful, would lead a 100% acquisition of shareholding in Jamii Bora Bank Limited.
Jamii Bora Bank is a Kenyan bank incorporated under the Companies Act with over 350,000 customers in 17 branches and an asset base of Ksh12.5 billion.
The acquisition offers the group the opportunity to cross-sell and deepen product offerings to the enhanced customer base and create a niche bank to offer specialised credit offerings that include MSME Banking, Microfinance, Youth & Women Banking, Asset Finance, and Leasing.
In the course of 2019, the bank also racked up a number of accolades for its excellent work culture including Kenya Bankers Association (KBA) 2019 Sustainable Finance Catalyst Award as well as Best Bank in Sustainable Finance in Kenya at the 2019 Energy Management Awards hosted by the Kenya Association of Manufacturers.