Co-op Bank records KSh20.7 billion profit

Managing Director and Chief Executive Dr Gideon Muriuki

NAIROBI, Kenya, March 19, 2020 – The Co-operative Bank of Kenya on Thursday recorded a profit of KSh20.7 billion for full-year 2019, up by 14 per cent compared to KSh18.2 billion in 2018.

After-tax, the Bank posted a profit of KSh14.3 billion compared to KSh12.7 billion in the previous year, group Managing Director and Chief Executive Dr Gideon Muriuki announced.

At the same time, Co-op’s total operating income grew by 10.9 per cent from KSh43.68 billion in the financial year 2018 to KSh48.46 billion in 2019. Customers’ deposits grew by 8.7 per cent from KSh306.12 billion to KSh332.82 billion.

Similarly, net loans and advances book grew by KSh21.31 billion (8.7 per cent) to stand at KShSh266.71 billion compared to KShSh245.41 billion in 2018. MCo-op Cash Mobile Wallet disbursed loans worth KSh43.1 billion in 2019. With the growth of a non-funded income, the MCo-op Cash Mobile wallet reported having 4.8 Million customers registered.

Borrowed Funds from development partners grew by KSh2.47 billion (10.3 per cent more) to KSh26.42 billion in 2019 compared to KSh23.95 billion in 2018. The bank invested, KSh117.80 billion, KSh37.53 billion more (46.8 per cent more) in 2019 compared to its investment in 2018 that stood at KSh80.27 billion

Co-operative Bank has so disbursed KSh8.05 billion to MSME.

Even though, the bank’s interest expense remained under tight control, increasing marginally by KSh96 million from KSh12.24 billion to KSh12.34 billion. This was despite an 8.6 per cent growth in deposits indicating improved management of the cost of funds.

With KSh15.2 billion by the bank for Middle and Small Enterprises (MSME) lending, over 70,000 customers are reported to have taken up the MSME packages rolled out in 2018, and 5,000 have been trained on business management and planning.

Co-operative Bank has so disbursed KSh8.05 billion to MSME. The Board of Directors of Co-operative Bank on March 11 approved the progression of discussions with Jamii Bora Bank Limited, which if successful, would lead to the Co-operative Bank of Kenya Limited acquiring the 100 cent shareholding in Jamii Bora Bank Limited.

Jamii Bora Bank is a Kenyan bank incorporated under the Companies Act with over 350,000 customers in 17 branches and an asset base of Sh12.5 billion.

The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offerings to the enhanced customer base and create a niche bank to offer specialised credit offerings that include MSME Banking, Microfinance, Youth & Women Banking, Asset Finance, and Leasing.

The Board of Directors also recommended for approval by the AGM the payment of a dividend of Sh1.00 per every ordinary share held subject to approval by the Capital Markets Authority. Shareholders’ funds grew to Sh79.33 billion in 2019 (+13.6 per cent) from Sh69.86 billion in 2018.

Coop Bank runs four subsidiaries namely; Kingdom Securities Ltd, Co-optrust Investment Services Limited, Co-operative Consultancy Services (K) Limited and Co-operative Bank of South Sudan.

 

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