Co-operative Bank Group’s net profit grew 12.4pc in the last year to about to Sh14.3 billion. The bank registered the spike due to strong growth in non-interest income.
In terms of non-interest income, which comes from fees and commissions on loans and advances, the company grew by 33pc to Sh17.3 billion up from Sh12.8 billion.
The comany registered 4.8 million customers on its mobile wallet dubbed M-Co-op cash something Co-op CEO Gideon Muriuki said was pivotal in the growth in the companies non-funded growth. Co-op disbursed loans valued at over Sh43.1 billion as at end of December 2019.
“The group has continued with a strategy for continued deepening and dominance in our domain market segment leveraging on our successful penetration of the micro, medium and small enterprises (MSMEs) and the Saccos, while reviewing opportunities to grow alternative income streams,” Mr Muriuki said.
The bank grew 1.4pc in total interest income to Sh43.64 billion even as loan book expanded by 8.7pc to Sh266.71 billion.
Interest income from government securities climbed 16pc to Sh11.35 billion as investment in government paper experienced a 46.8pc incline to Sh117.8 billion.
Despite an 8.6pc growth in deposits to Sh332.82 billion indicating higher demand deposits, Interest expense rose marginally to Sh12.34 billion.
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