Co-operative Bank of Kenya Posts Sh9.3 Billion Profit for Half Year of 2017

The Co-operative Bank has posted a pre-tax profit of Sh9.3 Billion for half the year of 2017 compared to Sh10.4 Billion recorded in the same period 2016.

This was a commendable performance against the backdrop of a tight operating environment especially with the capping of interest rates, general economic slowdown in an election year, currency devaluation and hyperinflation in South Sudan.

According to the bank, profit after tax for the period was Sh6.6 Billion compared to Sh7.4 Billion the previous year.

The bank's Managing Director Gideon Muriuki stated that the performance was attributed to the strategies put in place to ensure steady growth.

“The Group has put in place strategies intended at sustaining long-term profitability, with current challenges in the operating environment being mitigated by the benefits arising from the successful execution of the ‘Soaring Eagle’ Transformation project,” stated Muriuki.

At the same time, Co-operative Bank has received regulatory approval from the Central Bank of Kenya to enter into a Leasing business joint venture with South Africa's Super Group Limited.

Super Group is listed on the Johannesburg Securities Exchange and has a market capitalization of over USD 967 Million and operates in 5 countries globally.

The joint venture will take advantage of key strengths by the two partners and focus on the emerging opportunities in leasing business with the bank, providing the customer base and Super Group providing proven products, technology and expertise on the running of a scalable leasing business.

It will also leverage the support of the Co-operative movement with over 14 Million customers and over 22,000 co-operative societies.

Meanwhile, the bank has received its first ever international rating by the global credit ratings firm Moody’s where it was assigned a B1 Global Rating and a strong Aa2 National Scale Rating.

The strong rating affirms the strong performance of the bank on all fronts and is a credible signal to the bank’s counter parties especially investors and development partners.