The Co-operative Bank of Kenya has registered a profit after tax of 14.3 billion shillings for the Full Year of 2019, an increase from 12.7 billion shillings recorded the previous year.
Co-operative Bank Group also reported a Profit before Tax of 20.7 billion shillings compared to 18.2 billion shillings recorded in 2018, strong growth of 14 percent in the year.
During the 2019 financial year, the total operating income grew by 10.9 percent from 43.68 billion shillings to 48.46 billion shillings.
Growth in Operating Income attributed to an increase in Total interest income from 43.02 billion shillings to 43.64 billion shillings on account of; Interest income from government securities increasing by 16 percent from 9.79 billion shillings to 11.35 billion shillings. Interest income from loans & advances decreased slightly by 3.5 percent from 32.95 billion shillings to 31.78 billion shillings.
Interest expense remained under tight control, increasing marginally by 96 million shillings from 12.24 billion shillings to 12.34 billion shillings. This was despite an 8.6 percent growth in deposits indicating improved management of the cost of funds.
Total assets grew by 43.6 billion shillings (+10.5%) to 457 billion shillings from 413.4 billion shillings recorded at the close of the year 2018. Net loans and advances book grew by 21.31 billion shillings (8.7%) to stand at 266.71 billion shillings compared to 245.41 billion shillings in 2018.
Investment in Government securities grew by 37.53 billion shillings (+46.8%) to 117.80 billion shillings compared to 80.27 billion shillings in 2018. Customers’ deposits grew by 8.7 percent from 306.12 billion shillings to 332.82 billion shillings.
Borrowed Funds from development partners grew by 2.47 billion shillings (+10.3%) to 26.42 billion shillings compared to 23.95 billion shillings in 2018.
Shareholders’ funds grew to 79.33 billion shillings in 2019 (+13.6%) from 69.86 billion shillings in 2018. This has enabled the bank to continue to pitch for big-ticket deals.
“Through our multi-channel strategy, the Bank has successfully moved almost 90% of all customer transactions to alternative delivery channels that include self-service kiosks in 159 branches, an expanded 24-hour contact center, mobile banking, 583 ATMs, internet and over 16,700 Co-op Kwa Jirani banking agents,” said Co-op in a statement.
Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit before tax of 240.6 million shillings in 2019. This performance however translated to a monetary loss of 344.7 million shillings attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudanese pound.
Co-op Consultancy & Insurance Agency contributed 714 Million as at 31st December 2019. Co-op Trust Investment Services has aggressively grown the funds under management to 102.1 Billion as at 31st December 2019 compared to Kshs. 40.5 Billion as at 31st December 2018.