This archive report was first published on 23 August 2019.
Co-operative Bank of Kenya's net profit surged to Sh7.5 billion in the first half of 2019, a 5.6 per cent growth from Sh7.1 billion in the same period last year.
The bank's non-interest income increased by 25 per cent to Sh8.8 billion during the period under review, driven by commissions and fees.
Interest on government securities also rose by 22 per cent from Sh4.5 billion to Sh5.5 billion.
Co-operative Bank's Managing Director Gideon Muriuki attributed the growth to the lender's strategy of deepening its market segment and exploring alternative revenue streams.
"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 being done through Co-op Bank Fleet Africa Leasing Ltd, a strategic joint venture with Super Group of South Africa," Muriuki said in a statement.
As of June 2019, commercial banks were holding Government papers worth Sh1.4 trillion, an increase of 11.7 per cent from Sh1.3 trillion in the same period last year.
Co-operative Bank's focus on digital banking also contributed to its non-funded income, with its Mco-op Cash mobile wallet attracting 4.6 million customers and loans worth over Sh14.4 billion disbursed on the platform.
Meanwhile, NIC Group and Commercial Bank of Africa (CBA) registered flat growth in their net profits for the first six months of the year.
