This archive report was first published on 27 July 2020.
Co-operative Bank of Kenya has posted a remarkable profit of Sh20.7 billion for the full year 2019, marking a 14% increase from the Sh18.2 billion recorded in 2018. The bank's after-tax profit stood at Sh14.3 billion, up from Sh12.7 billion in the previous year, according to Group Managing Director and Chief Executive Dr Gideon Muriuki.
Co-op's total operating income grew by 10.9% from Sh43.68 billion in 2018 to Sh48.46 billion in 2019. Customer deposits increased by 8.7% from Sh306.12 billion to Sh332.82 billion. The bank's net loans and advances book grew by Sh21.31 billion (8.7%) to Sh266.71 billion, compared to Sh245.41 billion in 2018.
Co-op Cash Mobile Wallet disbursed loans worth Sh43.1 billion in 2019, with 4.8 million customers registered. Borrowed funds from development partners grew by Sh2.47 billion (10.3%) to Sh26.42 billion in 2019, compared to Sh23.95 billion in 2018.
The bank invested Sh117.80 billion in 2019, a 46.8% increase from Sh80.27 billion in 2018. However, the bank's interest expense remained under control, increasing marginally by Sh96 million from Sh12.24 billion to Sh12.34 billion.
Co-operative Bank has disbursed Sh8.05 billion to MSMEs, with over 70,000 customers taking up the MSME packages rolled out in 2018. The bank has also trained 5,000 customers on business management and planning.
The bank's Board of Directors approved the progression of discussions with Jamii Bora Bank Limited, which could lead to Co-operative Bank acquiring a 100% shareholding in Jamii Bora Bank Limited. The acquisition would enable Co-op Bank to cross-sell and deepen product offerings to an enhanced customer base.
Shareholders' funds grew to Sh79.33 billion in 2019, a 13.6% increase from Sh69.86 billion in 2018. Co-op Bank runs four subsidiaries and owns a 24.8% stake in CIC Insurance Group.
The bank has a significant footprint across Kenya and the region, with 155 branches in Kenya, four in South Sudan, 583 ATMs, and over 16,700 Co-op Kwa Jirani agency banking outlets supporting a growing client base of over 8.8 million account-holders.
