This archive report was first published on 15 November 2019.
Co-operative Bank Group has announced a significant increase in profit before tax for the third quarter of 2019, reaching Sh. 15.45 billion. This represents a 5.5% growth from Sh. 14.64 billion in the same period in 2018.
According to the bank's statement, profit after tax stood at Sh. 10.9 billion, a slight increase from Sh. 10.3 billion in the previous year.
During the period, the bank's total operating income grew by 9% from Sh. 32.3 billion to Sh. 35.2 billion. Total non-interest income increased by 33% from Sh. 10.6 billion to Sh. 14.1 billion.
Interest income from government securities also saw a significant increase, rising by 18% from Sh. 6.9 billion to Sh. 8.2 billion.
Co-op Bank has attributed its success to its multi-channel strategy, which has enabled the bank to move 89% of all customer transactions to alternative delivery channels.
“Through our multi-channel strategy, the Bank has successfully moved 89 per cent of all customer transactions to alternative delivery channels that include mobile banking, an expanded 24-hour contact centre, 586 ATMs, internet banking and over 16,000 Co-op Kwa Jirani banking agents,” said Co-op Bank in a statement.
Co-operative Bank of South Sudan, a unique Joint Venture (JV) partnership with the Government of South Sudan, made a profit before tax of Sh. 174.7 million during the period.
The Group has continued to leverage on the benefits of the “Soaring Eagle” Transformation Agenda, which has re-tooled and equipped the business with added competitive edge.
“The Group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties, which has progressively deepened our celebrated Financial Inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya,” said Co-op Bank in a statement.
Key highlights of the bank's performance include a 9% growth in total assets, reaching Kshs. 440.8 billion, and a 6% increase in net loans and advances book, reaching Kshs. 268.9 billion.
Customer deposits grew by 9% from Kshs. 296 billion to Kshs 322.5 billion, while borrowed funds from development partners grew by 14% to Kshs. 29.7 billion.
Shareholders’ funds grew from Kshs. 70.9 billion to Kshs. 73.9 billion, and the bank closed the quarter on a sound capital base, with adjusted total capital against total risk-weighted assets standing at 15.8%.
