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Co-operative Bank Profits After Tax Up By 12.4PC, Hits Ksh14.3 Billion

[IMAGE/ COURTESY]

Co-operative Bank Group has recorded a Profit before Tax of Ksh20.7 Billion for Full Year 2019 compared to Ksh18.2 billion recorded in 2018, a growth of 14 percent.

Profit after Tax was Ksh14.3 billion compared to Ksh12.7 billion in the previous year a 12,4 percent growth attributed to non-interest income.

In terms of non-interest income, which comes from fees and commissions on loans and advances, the company grew by 33 percent to Ksh17.3 billion up from Ksh12.8 billion.

Read: Co-op Bank Launches Import Finance Product for MSMEs

Co-op Bank, as it is popularly known, registered 4.8 million customers on its mobile wallet dubbed M-Co-op cash  and disbursed loans valued at over Ksh43.1 billion as at end of December 2019.

The bank grew 1.4pc in total interest income to Ksh43.64 billion even as loan book expanded by 8.7 percent to Ksh266.71 billion.

Total assets grew by Ksh43.6 billion (+10.5 percent) to Ksh457 billion from Ksh413.4 billion recorded at the close of year 2018.

Net loans and advances book grew by 21.31 billion (8.7 percent) to stand of Ksh266.71 billion compared to Ksh245.41 billion in 2018.

Read: Co-op Bank Donates Ksh20 Million Towards the Beyond Zero Campaign

Investment in Government securities grew by Ksh37.53 billion (46.8 percent) to Ksh117.80 billion compared to Ksh80.27 billion in 2018.

Customers deposits grew by 8.7 percent from Ksh306.12 billion to Ksh332.82 billion.

Borrowed Funds from development partners grew by Ksh2.47 billion (+10.3 percent) to Ksh26.42 billion compared to Ksh23.95 billion in 2018.

Shareholders’ funds grew to Ksh79.33 billion in 2019 (+13.6 percent) from Ksh69.86 billion in 2018.

Read: Reprieve For Customers As Co-op Bank Scraps Balance Enquiry Charges

Through our multi-channel strategy, the Bank has successfully moved almost 90 percent of all customer transactions to alternative delivery channels that include self-service kiosks in 159 branches, an expanded 24-hour contact centre, mobile banking, 583 ATMs, internet and over 16,700 Co-op Kwa Jiranl banking agents.

Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve over 8.8 million Account-holders across all sectors.

Over 70,000 customers have taken up the MSME packages rolled out in 2018, and 5,000 have been trained on business management and planning.

“We have earmarked Ksh15.2 billion for MSME lending, with Ksh8.05 billion disbursed to date. Our unique model of retailing banking services through Sacco FOSAs enabled us provide wholesale financial services to over 479 FOSA outlets, and issue over 1.18 Million Sacco-Link cards,” the bank said in a statement.

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Written by Francis Muli

Senior reporter at Kahawa Tungu, Muli has a passion for human interest stories. He believes in unearthing societal rots that have been hidden from the public eye. He has also carved himself a niche in writing business stories. He has worked for various organisations including Kenya Television Service, Business Today among others. Follow him on Twitter @FmuliKE.
Email: [email protected]

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