The Co-operative Bank Group on Thursday reported a Profit before Tax of Sh16.4 billion for the full year 2017 compared to Sh17.7 Billion recorded in 2016, a marginal drop of 7.3% despite the very challenging economic environment in the period.
Profit after tax was Sh11.4 Billion compared to Sh12.7 Billion in the previous year.
This is a very commendable performance against the backdrop of one of the most challenging operating environments that business had to contend with in the year with interest rate caps and lower economic growth in an election year.
The good performance represents the tangible benefits arising from the bold “Soaring Eagle” Transformation Project that the bank has been implementing since 2014 with a clear focus on improving operating efficiencies, salesforce effectiveness and innovative customer delivery platforms.
[caption caption="Coop Bank CEO Gideon Muriuki"]
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Notably, the cost-to-income ratio has progressively improved from a high of 59% in 2014 to 52% in 2017 with the institution enhancing lending to customers, with loans growing by Sh17 Billion (+7%) to Sh253.9 Billion.
The report revealed that customer deposits grew 9% to Sh287.7 Billion as the bank retained a solid capital base, with total capital against total risk-weighted assets at 22%, 7.5% above the statutory minimum of 14.5%.
Coop has adopted a multi-channel strategy including an expanded 24-hour contact centre, mobile banking, 580 ATMs, internet and over 9,000 Co-op Kwa Jirani banking agents to cater for 87% of all customer transactions that have migrated to alternative delivery channels.
The Group now serves 7 million account-holders across all sectors with a key focus is on digital banking, with the Mco-op Cash Mobile Wallet enrolling 3.6 Million customers.
In addition, the bank is keen to sustaining a growing partnership with 560 Sacco FOSAs and issued over 1 million Sacco-Link cards.
On the corporate social responsibility front, Co-op Bank Foundation has so far supported 6,303 gifted but needy students from all regions of Kenya since the inception of the program in 2007.
[caption caption="Coop bank branch"]
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The Group was earlier in the year named Overall Winner at the Kenya Bankers Association Sustainable Finance Catalyst Awards 2017, for building a sustainability strategy that enables people, businesses and society to grow in a way that is most sustainable in the long-term.
The Board of Directors recommended for approval by the AGM the payment of a dividend of Kshs. 0.80 per every ordinary share held subject to approval by the Capital Markets Authority.
[caption caption="Co-op Kwa Jirani"]
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