The Co-operative Bank Group has announced full financial results for 2018, which indicates a profit after tax of 12.7 billion shillings compared to 11.4 billion shillings in the previous year.
Against the backdrop of a challenging operating environment during the period under review, the lender realized an impressive growth of 11 percent in gross profits which stood at 18.2 billion compared to 2017’s 16.4 billion shillings.
Profits and Loss
An increase in interest income from government securities drove the lender’s total interest income for the period to gain by 7 percent from 40.37 billion shillings to 43.02 billion shillings.
The rise was also attributed to a 3 percent rise in interest income from loans that registered 31.94 billion shillings in the period under review.
Despite a 7 percent growth in deposits, the total interest expense fell by 300 million shillings from 12.27 billion shillings. Nonetheless, the total operating income grew by 5 percent from 41.6 billion to 43.68 billion shillings.
Statement of Financial Position
Co-op Bank’s assets grew by 7 percent from 26.5 billion shillings to 413.41 billion shillings from the 386.86 billion shillings recorded at the close of the year 2017.
The net loans and advances book marginally declined by 3 percent to settle at 245.41 billion shillings as opposed to what was recorded in 2017, which stood at 253.86 billion shillings.
The institution also recorded growth in government securities which rose by 16 percent to stand at 80.27 billion shillings compared to 69.24 recorded the previous year.
Also, customers deposits increased by 7 percent to 306.12 billion shillings whereas borrowed funds from development partners grew by 13 percent to 23.95 billion shillings compared to 21.16 billion recorded in 2017.
Notably, shareholders’ funds jumped to 69.86 billion shillings as indicated by the latest financial results enabling the bank to continue to pitch for big ticket deals.
Meanwhile, the Board of Directors has recommended for approval by the AGM the payment of a dividend of 1.00 shilling per every ordinary share held subject to approval by the Capital Markets Authority.
This will represent a growth of 25 percent compared to a dividend of 0.80 shillings paid in 2017.
In the regional expansion, the Co-operative Bank of South Sudan, which is a unique Joint Venture (JV) partnership with Government of South Sudan with Co-op Bank holding the majority share, made a Profit before tax of South Sudanese pounds (SSP) 897.3 million shillings in 2018.
This was 368 percent higher than SSP 192 million posted in 2017. The performance, however, translated to a monetary loss of 16.4 million shillings in 2018 attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudanese pound.