The Co-operative Bank Group has reported a Profit before Tax of Kshs.20.7 Billion for Full Year 2019 compared to Kshs.18.2 Billion recorded in 2018, a strong growth of 14% in the year. Profit after Tax was Kshs 14.3 Billion compared to Kshs 12.7 Billion in the previous year.
The bank has continued with a strategy of ‘increased dominance’ in the Domain Market Segment (Kenya) leveraging on our successful penetration of the Retail and Consumer Banking, Micro, Medium and Small Enterprises, Corporate Banking and the Co-operative Movement; while reviewing opportunities to grow alternative income streams from other services like Bancassurance and non-funded income streams.
In a statement sent to the media, the total operating income grew by 10.9% from Kshs 43.68 billion to Kshs 48.46 billion while growth in Operating Income attributed to an increase in Total interest income from Kshs 43.02 billion to Kshs 43.64 billion on account of interest income from government securities increasing by 16% from Kshs 9.79 billion to Kshs 11.35 billion.
Interest income from loans & advances decreased slightly by 3.5% from Kshs 32.95 billion to Kshs 31.78 billion while interest expense remained under tight control, increasing marginally by Kshs 96 million from Kshs 12.24 billion to Kshs 12.34 billion. This was despite an 8.6% growth in deposits indicating improved management of the cost of funds.
The bank’s total assets grew by Kshs 43.6 Billion (+10.5%) to Kshs. 457 Billion from Kshs 413.4 Billion recorded at the close of the year 2018 while Investment in Government securities grew by Kshs.37.53 billion (+46.8%) to Kshs. 117.80 billion compared to Kshs. 80.27 billion in 2018.
“Through our multi-channel strategy, the Bank has successfully moved almost 90% 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 Jirani banking agents,” the statement read,
Net loans and advances book grew by 21.31 billion (8.7%) to stand at Kshs. 266.71 billion compared to Kshs. 245.41 billion in 2018.
Chief executive Officer Gideon Muriuki said that Customers deposits grew by 8.7% from Kshs. 306.12 billion to Kshs 332.82 billion Borrowed Funds from development partners grew by Kshs. 2.47 billion (+10.3%) to Kshs 26.42 billion compared to Kshs.23.95 billion in 2018. while shareholders’ funds grew to Kshs. 79.33 billion in 2019 (+13.6%) from Kshs 69.86 billion in 2018. This has enabled the bank to continue to pitch for big-ticket deals.