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Coop Bank Advances Ksh200 Million Towards Government’s Affordable Housing Project

The Board of Directors of the Co-operative Bank has approved a Ksh200 million capital injection in the share capital of the Kenya Mortgage Refinance Company (KMRC). The money is in support of the affordable housing to the majority of Kenyans as envisaged in the Big Four Agenda.

KMRC, is an initiative of National Treasury and World Bank aimed at supporting the affordable housing agenda by providing secure, long-term funding to the mortgage lenders, thereby increasing the availability and affordability of mortgage loans to Kenyans. 

The bank announced the move today during the declaration of the half year financial results. Coop Bank announced a profit before tax of Ksh9.98 billion for the first half of 2018 compared to Ksh9.3 billion recorded in a similar period in 2017, a growth of 7.6%.

Profit after tax was Ksh7.1 billion compared to Ksh6.6 billion in the previous year.

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Total interest income improved by 7.9% from Ksh19.25 billion to Ksh20.8 billion on account of; Interest income from government securities increasing by 17.45% from Ksh3.87 billion to Ksh4.55 billion and Interest income from loans & advances increasing by 5.7% from Ksh15.26 billion to Ksh16.13 billion.

Total interest expense increased marginally by 2.2% from Ksh5.84 billion to Ksh5.97 billion on account of a 4.5% growth of deposits.

Total operating income grew by 6.3% from Ksh20.5 billion to Ksh21.8 billion.

Total assets grew by Ksh15.1 billion (+3.9%) to Ksh398.4 billion compared to Ksh383.3 Billion in the same period last year.

Net loans and advances book remained relatively stable at Ksh251.1 billion compared to Ksh252.6 billion in the same period last year.

Investment in Government securities grew by Ksh9.7 billion (+13.7%) to Ksh80.2 billion compared to Ksh70.5 billion in 2017.

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Total deposits grew by 4.5% from Ksh287.2 billion to Ksh300.2 billion. Borrowed funds from development partners dropped by Ksh5.9 billion (-24.3%) to Ksh18.4 billion compared to Ksh24.3 billion in the same period the previous year. This was as a result of an installment payment to the debt provider.

Shareholders’ funds grew from Ksh64.5 billion to Ksh68 billion, an impressive growth of 5.5%, supported by a steady growth in retained earnings.

The bank closed the quarter on a solid capital base, with adjusted total capital against total risk-weighted assets standing at 16.9%, which is 2.4% above the statutory minimum of 14.5%.

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Written by Francis Muli

Follow me on Twitter @francismuli_. Email francis@kahawatungu.com

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