The Co-operative Bank Group has recorded a Profit before Tax of Kshs.4.5 billion for 1Q2017 compared to 4.9 billion shillings recorded in 1Q2016, a commendable performance against the backdrop of a tighter operating environment especially with the capping of interest rates and currency devaluation and hyperinflation on our operations in South Sudan.
Profit after tax was 3.2 billion shillings compared to 3.4 billion shillings the previous year, a slight drop of 6 percent.
The strong Group performance is riding on the remarkable gains from the ‘Soaring Eagle Transformation Agenda’ that has closely focused on improving operational efficiency, superior customer service, and lower operating costs; The Group has remarkably reduced the overall operating costs with a Cost Income Ratio of only 47.9 percent this quarter, compared to a ratio of 52.1 percent similar period last year and a high of 60 percent in 2014.
Key financial highlights include; –
- Balance sheet
- Total assets grew by 27.7 billion shillings (+7.9%) to 78.5 billion shillings compared to 350.7 Billion shillings in the same period last year.
- Net loans and advances book grew by 32.2 Billion shillings (+15%) to 245.9 billion shillings compared to 213.7 Billion shillings in the same period last year.
- Customer deposits grew by 18.1 billion shillings (+6.9%) to 279.8 billion shillings compared to 261.7 billion shillings in the same period last year.
- Shareholders’ funds grew from 55.3 billion shillings to 63.8 billion shillings, an impressive growth of 15.4 percent, supported by a steady growth in retained earnings and a progressive dividend policy.
- Profit & Loss
- Total interest income reduced by 10.8 percent from 10.7 billion shillings in 1Q2016 to 9.5 billion shillings in 1Q2017.
- Total interest expense reduced by 26.9 percent from 3.9 billion shillings in 1Q2016 to 2.8 billion shillings in 1Q2017 on account of reduced cost of funding.
- Total operating income reduced marginally by 1.8 percent from 10.3 billion shillings in 1Q2016 to 10.1 billion shillings in 1Q2017.
- Interest income from loans & advances declined by 7.7 percent despite the 15 percent increase in net loans & advances.