Key highlights
Pretax profit up 59% to Kshs 22.6 billion
Net profit up 54.3% to Kshs 16.5 billion
Dividends – Kshs 1 per share, shareholders to pocket Kshs 5.9 billion
Total Assets grew 8% to Kshs 579.8 billion
Customer deposits increased 8% to Kshs 407.7 billion
Total operating income grew12% to Kshs 60.4 billion
The details
Co-op Bank Group has reported a Kshs 16.5 billion in 2021 full net profit, representing a 54.3% year-on-year increase.
The profit which is the highest for the lender, was mainly driven by a double digit growth in total operating income, which grew 12% from Kshs 53.8 billion to Kshs 60.4 billion.
Commenting on the results, Co-op Bank Group CEO Dr. Gideon Muriuki said: “This is the best performance ever by the Bank, and is in line with the Group’s strategic focus on Sustainable Growth and Transformation.”
During the year, the group’s total assets grew 8% from Kshs 536.9 billion to Kshs 579.8 billion. Customer deposits also rose by a similar margin from Kshs. 378.6 billion to Kshs 407.7 billion.
Shareholders’ funds recorded a 10% increase to Kshs 100.2 billion “enabling us to continue pitching for big ticket deals,” said Dr. Muriuki.
The net loans and advances book grew 8% to Kshs. 310.2 Billion, a +8% growth from Kshs.286.6 Billion in
Comprehensive income
Total operating income grew by 12% to Kshs 60.4 billion. This mainly comprised of total non-interest income that rose 11% to Kshs 19.4 billion and net interest income that grew 13% to Kshs 41.0 billion.
This coupled with cost management involving total operating expenses that improved by 3% from Kshs 39.4 billion to Kshs. 38.1 billion, contributed to the commendable full year profit posted by the listed firm.
Subsidiaries
Co-op Consultancy & Bancassurance Intermediary posted a pretax profit of Kshs 803.9 million, riding on strong penetration of Bancassurance business.
Kingdom Bank Limited (former Jamii Boar Bank) has contributed a pretax profit of Kshs. 512.4 million.
Co-op Trust Investment Services contributed Kshs. 140.4 million in pretax profit. This is after the Funds Under Management steadily grew by 48.4% to Kshs 189.2 billion.
Co-operative Bank of South Sudan (Co-op Bank 51% and Government of South Sudan 49%) returned a monetary loss of Kshs 421.7 million attributed to hyperinflation accounting due to currency devaluation of the South Sudanese pound.
Dividend payment
The Board of Directors has recommended subject to shareholders approval at the next AGM to be on 29th May 2022, a dividend payment of Kshs 1/= per share (totaling Kshs 5.9 billion in dividend payout).
Increased market dominance
Dr. Muriuki says a successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve over 9 million account holders across all sectors.
“Through our multi-channel strategy, the Bank has successfully moved 94% of all customer transactions to alternative delivery channels, an expanded 24-hour contact centre, mobile banking, 561 ATMs, internet banking and over 26,000 Co-op Kwa Jirani agency banking terminals,” he explains.
The Group CEO says the Key focus on digital banking has seen the lender dispersing an average of Kshs 6 billion loans monthly via the all-telco Mco-op Cash Mobile Wallet. About 5.3 million customers are registered on the Mco-op Cash Mobile Wallet.
In addition, the lender says its unique model of retail banking services through Sacco FOSAs enabled it to provide wholesale financial services to over 464 FOSA outlets.
Corporate social investment
Co-operative Bank Foundation has continued to provide annually over 650 Scholarships to 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,” said Dr. Muriuki.
The Co-operative Bank foundation is fully-funded by the bank and has so far supported 8,842 students since the inception of the program.
Accolades
The Best Bank CEO in Africa Award, to Dr. Gideon Muriuki, Group Managing Director & CEO, Co-op Bank at the EMEA Awards, African Banking Awards in recognition of the “bold decision to sustain the same level of dividend payments to shareholders despite the Covid-19 crisis [which] offered a most timely relief, especially to the over 15 Million-Member Co-operative Movement, whose livelihoods would have been severely impaired had the dividend been withheld.”
The Bank notably also sustained a relentless focus on Staff Wellness with the unprecedented challenges occasioned by the Covid-19 pandemic; notably it undertook a bank-wide analysis to identify and address manpower inefficiencies spurred by the disruption, with a critical focus on staff redeployment/retention other than redundancies.
In addition, the group won the Best Bank in Kenya Award, and was recognized as the Best Bank in Financial Inclusion in Africa, at the EMEA Awards.
Co-optrust Investments Services, which is the Group’s subsidiary, was named Best Asset Manager in Kenya. It now has an Asset Base of over Kshs 189.2 Billion under its management.
Dr. Muriuki also received his second Honorary Doctorate in February 2022 from the Co-operative University of Kenya.