Co-operative Bank Group has reported Kshs 19.2 billion in net profit during the first nine months of this year, representing a 4.3% increase that was mainly powered by interest income.
Co-operative Bank Group, Managing Director, Gideon Muriuki says the profit was driven by a 12.3% growth in net interest income to Kshs 36.9 billion.
Net loans and advances increased from Kshs 378.1 billion to Kshs 381.3 billion. From this, total operating income increased 10.8% to Kshs 59.2 billion. This comprised net interest income which rose 12.3% to Kshs 36.9 billion and total non-interest income which grew by 8.2% to Kshs 22.3 billion.
“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility delivering a competitive Return on Equity of 21.3%, riding on the ‘Soaring Eagle’ Transformation Agenda,” Muriuki says.
During the first nine months of this year, total operating expenses increased by 12.7% Kshs 32.7 billion mainly on account of opening of eight of the targeted 15 new branches this year that pushed up the number of employees.
Co-operative Bank’s branch network has expanded to 204 outlets, of which five are in South Sudan.
In addition, the lender increased investment in digitisation and the core banking system. Muriuki says: “The Bank continues to leverage the latest version of Finacle from Infosys, one of the best-rated platforms globally, to support the Group’s digital synergy.”
Total assets rose 13.5% to Kshs 750.8 billion while customer deposits grew 18.7% to Kshs 514 billion.
He says the lender has moved 93% of all customer transactions to alternative delivery channels, such as the contact centre, ATMs, mobile & internet banking and Co-op kwa Jirani agents.
Muriuki says the Co-operative Bank Group will pursue strategic initiatives focusing on resilience and growth in the various economic sectors. “This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint, and the unique synergies in the over 15-million-member co-operative movement that is the largest in Africa,” he says.