Co-op Bank Group made Kshs. 15.3 billion in half year pretax profit, representing a 45% year-on-year growth when compared to the Kshs. 10.5 billion lender posted during a similar period in 2021.
Lender made Kshs. 11.5 billion in net profit during the period, compared to Kshs. 7.4 billion reported in 2021.
Co-op Bank Group Managing Director Gideon Muriuki says: “the performance delivers a competitive Return on Equity of 24.2% to our shareholders. The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.”
The key figures
During the period, total Assets grew 5.4% to Kshs. 603.9 billion while investment in Government securities marginally increased to Kshs. 183.2 billion., compared to Kshs. 182 billion in 2021.
Net loans and advances increased 9.6% to Kshs. 330 billion.
Customer deposits rose 4% to Kshs 423 billion.
Total operating income grew by 17.8% to Kshs 34.4 billion.
Net interest income increased 11.8% to Kshs 21.1 billion while total non-interest income rose 29% to Kshs 13.3 billion.
Total operating expenses increased marginally by 2.5% to Kshs. 19.2 billion.
The Cost to Income ratio improved to 46% from 59% in 2014.
Muriuki explains that “the Credit Management remains a key focus area as we continue to execute our Credit Quality and Growth strategies that have registered progressive improvement in loan book quality.”
He says the bank has successfully moved 94% of all customer transactions to alternative delivery channels, an expanded 24-hour contact centre, mobile banking, 558 ATMs, internet banking and a countrywide network of Co-op Kwa Jirani agents.
“We have successfully migrated our customers to the Omni-channel, integrating accessibility and user experience. Our omnichannel interfaces online banking through personal computers, mobile phones and USSD availing our services to all customers through their preferred channel yet retain the same experience from wherever they are,” said Muriuki.
He says the all-telco Mco-op Cash Mobile Wallet played a pivotal role in the growth of non-funded income with 5 Million customers registered and loans worth Kshs 40.8 billion disbursed year-to-date, averaging about Kshs. 6.8 billion per month.
Subsidiaries
Co-op Consultancy & Bancassurance Intermediary Ltd posted a pretax profit of Kshs 593.3 million, riding on strong penetration of Bancassurance business.
Co-operative Bank of South Sudan recorded a profit of Kshs 55.5 million compared to a loss of Kshs 290.1 million in a similar period a year ago.
Co-op Trust Investment Services contributed Kshs. 85.7 Million in pretax profit, with Funds Under Management increasing to Kshs. 196.4 billion compared to Kshs. 179.4 billion as at June 2021.
Kingdom Bank Limited (a niche MSME Bank) made a pretax profit of Kshs. 405.9 million compared to Kshs. 275 million reported last year representing a 48% growth year-on-year.