Co-op Bank’s Profit Before Tax increased to 10.5 billion shillings for the second quarter of 2021, a commendable 10 percent growth compared to 9.6 billion shillings recorded in the second quarter of 2020.
“This represents a strong Profit After Tax of 7.4 billion shillings compared to 7.2 billion shillings reported in the second quarter of 2020,” said Co-op Bank in a statement.
During the period, total assets grew by 59.1 billion shillings, a 12 percent growth to 573 billion shillings compared to 513.9 billion shillings in the same period last year. Net loans and advances book grew by 29 billion shillings, 11 percent growth from 272.2 billion shillings to 301.2 billion shillings.
At the same time, investment in Government securities grew by 59.6 billion shillings to 182 billion shillings compared to 122.4 billion shillings in 2020. Customer deposits grew by 6 percent from 384.6 billion shillings to 407.7 billion shillings.
Borrowed funds from development partners grew by 18.8 billion shillings (+73%) to 44.4 billion shillings from 25.6 billion shillings in 2020. Shareholders’ funds grew to 92.6 billion shillings (+16%) from 80.1 billion shillings in 2020 enabling us to continue pitching for big-ticket deals.
According to the lender, total operating income grew by 20 percent from 24.2 billion shillings to 29.2 billion shillings. Total non-interest income grew by 24 percent from 8.3 billion shillings to 10.3 billion shillings. Net interest income grew by 18 percent from 15.9 billion to 18.8 billion shillings.
Total operating expenses grew by 28 percent from 14.6 billion to 18.7 billion on account of 123 percent prudential growth in loan-loss provisions.
Through the bank’s multi-channel strategy, the Bank has successfully moved 93 percent of all customer transactions to alternative delivery channels and expanded 24-hour contact center, mobile banking, 576 ATMs, internet banking, and over 25,000 Co-op Kwa Jirani banking terminals.
“A successful Universal Banking model and the implementation of SalesForce Effectiveness has seen the Group serve over 8 million Account holders across all sectors,” said the bank.
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 2 Million customers registered and loans worth 33.5 billion shillings disbursed year-to-date, averaging 5.6 billion shillings per month.
“Over 127,760 customers have taken up the MSME packages that we rolled out in 2018, and 13,015 have been trained on business management skills. To date, we have disbursed 28 billion to MSMEs through our E-Credit solution,” added the lender.
The bank says their unique model of retail banking services through Sacco FOSAs enabled them to provide wholesale financial services to over 479 FOSA outlets and issue over 4 million Sacco-Link cards.