This archive report was first published on 18 November 2021.
Co-operative Bank Group has reported a significant increase in profit before tax, reaching Ksh16.5 billion for the period ending 30th September 2021. This represents a 20% growth compared to Ksh13.8 Billion in the same period of the previous year.
According to the financial results, the bank's strong performance exceeds its pre-Covid-19 performance and is in line with the Group's strategic focus on growth, resilience, and agility. The Group's total assets grew by Ksh82 billion (up 16%) to Ksh592.9 billion compared to Ksh510.9 billion in the same period last year.
Customer deposits expanded by 12% from Ksh375.5 billion to Ksh420.4 billion. Borrowed funds increased by Ksh17.7 billion (+67.6%) to Ksh43.8 billion from Ksh26.2 billion in 2020. Shareholders' funds went up to Ksh95 billion (+16%) from Ksh82.0 billion in 2020.
Managing Director and CEO Dr Gideon Muriuki said credit management remains a key focus area in supporting a return to pre-Covid non-performing loans levels. The Group prudentially increased loan loss provisions to Ksh6 billion in the third quarter of 2021, in appreciation of the challenges that businesses and households continue to face due to the effects of Covid-19.
Through its multi-channel strategy, the bank has successfully moved 93% of all customer transactions to alternative delivery channels, backed by an expanded 24-hour contact centre, mobile banking, 589 ATMs, internet banking, and over 23,000 Co-op Kwa Jirani agency banking terminals.
Co-op Consultancy & Bancassurance Intermediary Limited posted a Profit Before Tax of Ksh648.0 million as at 30th September 2021, riding on strong penetration of Bancassurance business. Co-operative Bank of South Sudan, a partnership with the Government of South Sudan, returned a monetary loss of Ksh104 million in Q3 of 2021 attributable to hyperinflation accounting due to currency devaluation of the South Sudanese pound.
