Co-operative Bank Records Kshs14.65 Billion Profit in 9 Months

  • The Co-operative Bank Group reported a Profit before Tax of Kshs.14.65 Billion for the for the nine months upto 30 September 2018.

    The figures registered an impressive growth of 7% compared to Kshs.13.74 Billion recorded in 2017.

    Profit after tax was Kshs 10.31 Billion compared to Kshs 9.54 Billion in the previous year, a remarkable 8% growth. 

    The Group continues to leverage on the benefits arising from the “Soaring Eagle” Transformation Project that the bank has been implementing since 2014, with a clear focus on improvement in Operating Efficiencies, Salesforce Effectiveness and Innovative customer delivery platforms.

    Co-op Bank CEO Gideon Muriuki

    "The commendable performance is an affirmation of the Transformation Agenda which has re-tooled and equipped the business with the strategic agility and resilience to achieve set objectives even in the difficult trading environment; the future can only be brighter with the much-improved fortunes in our domain operating environment that is on an upswing," the group's managing director and CEO Gideon Muriuki.

    The key financial highlights include;

    Profit & Loss

    Total interest income improved by 3.5% from Kshs29.85 Billion to Kshs30.89 Billion on account of; Interest income from government securities increasing by 13.5% from Kshs6.12 Billion to Kshs6.95 Billion and Interest income from loans & advances increasing by 1% from Kshs23.58 Billion to Kshs23.77 Billion.

    Total interest expense remained tightly controlled, increasing marginally by 1% from Kshs9.08 Billion to Kshs9.15 Billion on account of a 3% growth in deposits. Total operating income grew by 5% from Kes 30.91 Billion to Kes 32.32 Billion.

    Balance sheet

    Total assets grew by Kshs 15.85 Billion (+4%) to Kshs. 404.15 Billion compared to Kshs 388.30 Billion in the same period last year.

    Net loans and advances book declined marginally (-2%) to Kshs. 254.21 billion compared to Kshs. 259.39 billion in the same period last year.

    Co-op Bank

    Investment in Government securities grew by Kshs15.16 Billion (+22%) to Kshs83.25 Billion compared to Kshs. 68.09 billion in 2017.

    Total deposits grew by 3% from Kshs290.19 Billion to Kshs297.60 Billion.

    Borrowed funds from development partners dropped by Kshs2 Billion (-7%) to Kshs 25.98 billion compared to Kshs.27.99 billion in the same period the previous year. This was as a result of an instalment payment to the debt provider.

    Shareholders’ funds grew to Kshs. 70.89 billion supported by a steady growth in retained earnings.

    Innovative Customer Delivery Platforms

    Through Co-op bank’s multi-channel strategy, the Bank has successfully moved almost 90% of all customer transactions to alternative delivery channels that include Mobile Banking, a 24-hour contact centre, 580 ATMs, Internet Banking and over 11,000 Co-op Kwa Jirani banking agents.

    Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with over 3.9 million customers registered.

    Co-op Bank kwa jirani

    Regional Expansion

    Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a remarkable Profit before tax of Kshs235.12 Million in Q32018 compared to a profit of Kshs39.15 Million in the corresponding period in 2017.

    Corporate Social Responsibility Programs

    Co-op Bank Foundation has provided Scholarships for gifted but needy students from all regions of Kenya. The sponsorship includes; fully-paid secondary education, full fees for University education, Internships and career openings for beneficiaries. The foundation is fully funded by the bank and has so far supported 6,331 students since the inception of the program in 2007.

    Accolades

    The Group was recognized by Europe, Middle East and Africa Finance (EMEA Finance) – African Banking Awards 2018 as the Best Bank in Kenya and Best Product Launch in Africa (MCo-op Cash v4.0 update).

    Co-op visa debit card

    The Group was also recognised by Banker Africa East Africa Awards 2018 with three key awards, namely the Best Retail Bank in Kenya, The Best SME Bank in Kenya and the Best Investment Institution in Kenya. This is a re-affirmation of the bank’s unique position as a bank that positively influences the lives of the majority of Kenyan citizens.