This archive report was first published on 22 August 2019.
Co-operative Bank Posts Sh10.44 Billion Profit in First Half of 2019 ¶
Published on August 22, 2019, the Co-operative Bank Group reported a pre-tax profit of Sh10.44 billion for the first half of 2019, a 5% increase from the Sh9.98 billion recorded in the same period in 2018.
The bank's profit after tax was Sh7.5 billion, up from Sh7.1 billion in the previous year. The Group attributed the growth to the 'Soaring Eagle' Transformation Agenda, which has equipped the business with a competitive edge.
Key financial highlights include a 5% growth in total operating income to Sh23 billion, with non-interest income increasing by 25% to Sh8.8 billion. Interest income from government securities grew by 22% to Sh5.5 billion.
Operating expenses remained controlled, growing by 5% to Sh12.6 billion due to prudent cost management and enhanced efficiency.
Balance sheet highlights include a 8% growth in total assets to Sh430 billion, with net loans and advances growing by 3% to Sh257.6 billion. Investment in government securities grew by 18.4% to Sh95 billion, while customer deposits increased by 8.3% to Sh325 billion.
The bank maintained a sound capital base, with adjusted total capital against total risk-weighted assets standing at 16.7%, 2.7% above the statutory minimum.
The Co-operative Bank Group has successfully moved 88% of customer transactions to alternative delivery channels, including mobile banking, ATMs, and internet banking. The bank has also served 8.2 million account-holders across all sectors.
Key focus areas include digital banking, with the Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income. Over 4.6 million customers have registered for the service, with loans worth Sh14.4 billion disbursed as at the close of the first half of 2019.
The bank has also earmarked Sh15.2 billion for MSME lending and has disbursed Sh3.4 billion under the program. The bank's unique model of retail banking services through Sacco FOSAs has enabled the provision of wholesale financial services to over 464 FOSA outlets.
Subsidiaries, including Co-operative Bank of South Sudan and Co-op Consultancy & Insurance Agency, contributed to the Group's performance. The Co-op Trust Investment Services has aggressively grown the funds under management to almost Sh100 billion.
The Co-operative Bank Group says it will continue to deliver good performance as it focuses on growing the 8.2 million account-holder base, digital banking, and the basket of innovative financial solutions.
