Co-operative Bank records Kes 14.6 billion profit in just nine months

The Co-operative Bank Group has reported a profit before Tax of Kesh 14.65 billion for the for the nine months up to 30th September 2018.

This is an impressive growth of 7% against the backdrop of a challenging economic environment in the period. The bank record a Kes 13.74 billion in the same period last year. Profit after tax was Kes 10.31 billion compared to Kes 9.54 billion in the previous year, a remarkable 8% growth.

The commendable performance is an affirmation of the Transformation Agenda which has re-tooled and equipped the business with the strategic agility and resilience to achieve set objectives even in the difficult trading environment.

The Group continues to leverage on the benefits arising from the “Soaring Eagle” Transformation Project that the bank has been implementing since 2014, with a clear focus on improvement in Operating Efficiencies, Salesforce Effectiveness and Innovative customer delivery platforms.

The key financial highlights include;

Profit & Loss

Total interest income improved by 3.5% from Kes 29.85 billion to Kes 30.89 billion on account of; Interest income from government securities increasing by 13.5% from Kes 6.12 billion to Kes 6.95 billion and Interest income from loans & advances increasing by 1% from Kes 23.58 billion to Kes 23.77 billion.

Total interest expense remained tightly controlled, increasing marginally by 1% from Kes 9.08 billion to Kes 9.15 billion on account of a 3% growth in deposits.  Total operating income grew by 5% from Kes 30.91 billion to Kes 32.32 billion.

Balance sheet

Total assets grew by Kes 15.85 Billion (+4%) to Kes 404.15 Billion compared to Kshs 388.30 Billion in the same period last year.

Innovative Customer Delivery Platforms

Through Co-op bank’s multi-channel strategy, the Bank has successfully moved almost 90% of all customer transactions to alternative delivery channels that include Mobile Banking, a 24-hour contact centre, 580 ATMs, Internet Banking and over 11,000 Co-op Kwa Jirani banking agents.

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 3.9 million customers registered.

Regional Expansion

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 remarkable Profit before tax of Kes 235.12 Million in Q32018 compared to a profit of Kes 39.15 Million in the corresponding period in 2017.

Corporate Social Responsibility Programs

Co-op Bank Foundation has provided Scholarships for gifted but needy students from all regions of Kenya. The sponsorship includes; fully-paid secondary education, full fees for University education, Internships and career openings for beneficiaries. The foundation is fully funded by the bank and has so far supported 6,331 students since the inception of the program in 2007.

Accolades

The Group was recognized by the Europe, Middle East and Africa Finance (EMEA Finance) – African Banking Awards 2018 as the Best Bank in Kenya and Best Product Launch in Africa (MCo-op Cash v4.0 update).

The Group was also recognised by Banker Africa East Africa Awards 2018 with three key awards, namely the Best Retail Bank in Kenya, The Best SME Bank in Kenya and the Best Investment Institution in Kenya. This is a re-affirmation of the bank’s unique position as a bank that positively influences the lives of the majority of Kenyan citizens.