Co-Operative Bank of Kenya has released its full year financial results for the year that ended on 31st of December 2015. In an event that took place at the Intercontinental Hotel, the bank announced a total profit after tax of 11.71 billion shillings. This was an increase of 3.7 billion from the profit witnessed in 2014 where profit after tax stood at 8.01 billion.
In the financial year that ended on 31st December 2015, the profit before tax stood at 15.38 billion shillings, an increase from 10.92 billion shillings in the year ended 31 December 2014. The profit before tax for the year 2015 is an increase of 40.8 percent year/year growth. The bank during 2014 had projected the profit after tax growth at 20 percent but surpassed it by more than half. At the same time, the bank revealed that the cost to income ratio reduced from 59 percent in 2014 to 53 percent in 2015.
The bank made a profit of 850 million shillings from South Sudan but made a transformational loss of 1.8 billion shillings from the South Sudan market. South Sudan at the moment is going through a financial turmoil with its currency having been devalued by more than 100 percent. Kenyan banks announced a combined loss of more than 12 billion shillings in the South Sudan market as a result of the devalued currency.
The bank also boosts of a strong balance sheet as well as a strong Profit & Loss growth of 20 and 41 percent respectively. The bank also attributes its profits this year with the continued implementation of the initiative known as ‘Soaring Eagle’ Transformation which has seen the bank scaling the heights.
The Cooperative Bank of Kenya is credited as the first bank to support cooperate societies in the country and currently continues to support Kenya Cooperative coffee exporters Ltd in an effort to help farmers maximize returns on their business.
Article by Juma Fred.