This archive report was first published on 22 August 2019.
Co-operative Bank has reported a 4.6 per cent growth in net profit for the first six months of 2019, reaching Sh7.5 billion.
According to the bank's results, total non-interest income increased by 25 per cent from Sh7 billion to Sh8.8 billion, while interest income grew marginally to Sh20.45 billion from Sh20.2 billion.
Group Managing Director Gideon Muriuki attributed the growth to a prudent cost management strategy and revenue diversification.
"The group has continued with a strategy for continued deepening and dominance in our domain market segment while reviewing opportunities to grow alternative revenues from other services like bancassurance, and leasing business," said Mr Muriuki.
The bank's all-telco Mco-op Cash mobile wallet was a key driver in growing non-funded income, disbursing loans worth Sh14.4 billion as at the close of the half-year under review.
However, the bank's South Sudan joint venture, in which it owns a 49 per cent stake, made a before-tax profit of Sh93 million, a 19 per cent drop compared to Sh115 million posted in the half-year of 2018.
Despite this, Co-op Bank remained the third most profitable lender after Equity and KCB Group, which posted Sh11.92 billion and Sh12.7 billion net profit respectively during the period.
Meanwhile, NIC Bank, which is working on a merger with Commercial Bank of Africa, saw a 4.2 per cent drop in profit to Sh1.9 billion.
