This archive report was first published on 19 August 2021.
Co-op Bank Group Posts 10% Profit Growth in Q2 2021 ¶
Published on August 19, 2021
Co-op Bank Group has reported a commendable 10% growth in Profit Before Tax, reaching Kshs.10.5 billion in the second quarter of 2021, up from Kshs.9.6 billion recorded in the same period last year.
This represents a strong Profit After Tax of Kshs.7.4 billion, compared to Kshs.7.2 billion reported in the second quarter of 2020.
The bank's growth can be attributed to several factors, including a robust Credit Management initiative and the decentralization of Loan Portfolio Management.
Co-op Bank Group has also attributed its success to a strong digital footprint, with 93% of all customer transactions moved to alternative delivery channels, including mobile banking, internet banking, and over 25,000 Co-op Kwa Jirani banking terminals.
The bank's subsidiary, Co-op Consultancy & Insurance Agency, posted a Profit Before Tax of Kshs.433.8 million, riding on strong penetration of Bancassurance business.
However, Co-op Bank of South Sudan, a joint venture partnership with the South Sudan Government, returned a monetary loss of Kshs.290 million in Q2 2021, attributable to hyperinflation accounting due to currency devaluation of the South Sudanese pound.
Co-op Trust Investment Services contributed Kshs.47.9 million in Profit Before Tax in Q2 2021, with Funds Under Management standing at Kshs.179.4 billion.
Kingdom Bank Ltd, in which Co-op Bank holds a controlling 90% equity interest, has contributed a Profit Before Tax of Kshs.275 million in Q2 2021, compared to a 2020 full-year loss of Kshs.124 million.
