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Co-op Bank Records Ksh 15.4 Billion In Profit For Q3

BY Soko Directory Team · November 15, 2019 07:11 am

The Co-operative Bank Group has registered profit before Tax of Kshs.15.45 Billion for the third quarter of 2019 compared to Kshs.14.64 Billion recorded in third-quarter 2018.

According to the lender, this was a strong growth of 6 percent against the backdrop of a challenging economic environment in the period.

Profit after tax was Kshs 10.9 Billion compared to Kshs 10.3 Billion in the previous year.

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.

“The agenda 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 the lender in a statement.

The Group has continued with a strategy for continued deepening and dominance in our domain market segment leveraging on our successful penetration of the Micro, Medium and Small Enterprises and the Saccos, while reviewing opportunities to grow alternative income streams 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.

Read: Co-operative Bank Gives You A Variety Of Insurance Coverage

Key financial highlights include;-

Total operating income grew by 9% from Kshs 32.3 billion to Kshs 35.2 billion.

Total non-interest income increased by 33% from Kshs 10.6 billion to Kshs 14.1 billion.

Interest income from government securities increased by 18% from Kshs 6.9 billion to Kshs 8.2 billion.

Total operating expenses grew by 11% from Kshs 17.8 billion to Kshs. 17.8 billion on account higher loan loss provision.

The balance sheet of Co-operative Bank:

Total assets grew by 36.6 billion shillings (+9 percent) to 440.8 billion shillings compared to 404.2 Billion shillings in the same period last year.

Net loans and advances book grew by 14.7 billion shillings (+6 percent) from 254.2 billion shillings to 268.9 billion shillings.

Investment in Government securities grew by 11.4 billion shillings (+13.7 percent) to 94.6 billion shillings compared to 83.2 billion shillings in the first three quarters of 2018.

Customer deposits grew by 9 percent from 296 billion shillings to 322.5billion shillings.

Borrowed funds from development partners grew by 3.7 billion shillings (+14 percent) to 29.7 billion shillings from 26 billion shillings in the previous year.

Shareholders’ funds grew from 70.9 billion shillings to 73.9 billion shillings.

The bank closed the quarter on a sound capital base, with adjusted total capital against total risk-weighted assets standing at 15.8 percent, which is 1.3 percent above the statutory minimum of 14.5 percent.

The bank also adopted a successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve 7 million Account-holders across all sectors.

There has been a key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with over 4.7 Million customers registered and loans worth over Kshs 27.6 billion disbursed as at the close of quarter three 2019.

Over 56,800 customers have taken up the rolled out MSME packages that the bank launched in 2018 and 4000 have been trained on business management and planning.

“We have earmarked Kshs 15.2 billion for MSME lending and to date, we have disbursed Kshs 5.4 billion under the program,” said the lender

“Our unique model of retail banking services through Sacco FOSAs enabled us to provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards,” it added.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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