The Co-operative Bank Group has registered KSh 5.1 billion in profit before tax during the first quarter of 2019.
The bank said the amount translated to a 4.4% growth compared to KSh 4.9 billion that it collected during the same period under review in 2018.
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Co-op Bank CEO Gideon Muriuki attributed the surge in profit to the transformation agenda that he noted had re-tooled and equipped the business thus giving it a competitive edge in the financial market.
“This is reflected in the sustained growth in market share across all market segments and counties, which has progressively deepened our celebrated financial inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya,” Muriuki said on Wednesday, May 22.
The lender’s profit after tax stood at KSh 3.6 billion which signified 5.8% growth from KSh 3.4 billion recorded in FQ1 of 2018.
Profit and Loss
- Total non-interest income increased by 19.1% from KSh 3.5 billion to KSh 4.2 billion.
- Interest income from government securities increased by 39.6% from KSh 2.0 billion to KSh 2.8 billion.
- Total operating income grew by 1.7% from KSh 10.9 billion to KSh 11.1 billion.
- Total operating expenditure decreased by 1.2% from KSh 6.1 billion to KSh 6.0 billion as a result of prudent cost management strategy and enhanced efficiency.
1 . Balance sheet
- Total assets grew by KSh 27.9 billion (+7%) to KSh 425.7 billion compared to KSh 397.8 billion in the same period last year.
- Net loans and advances book remained relative stable at KSh 251.6 billion.
- Investment in Government securities grew by KSh 29.0 billion (+38.6%) to KSh 103.9 billion compared to KSh 75.0 billion in first quarter of 2018.
- Customers deposits grew by 7.4% from KSh 295.9 billion to KSh 317.8 billion
- Borrowed funds from development partners grew by KSh 3.1 billion (+14.9%) to KSh 23.7 billion compared to KSh 20.7 billion in the same period the previous year.
- Shareholders’ funds grew from KSh 67.9 billion to KSh 72.8 billion.
- The bank closed the quarter with a sound capital base, with adjusted total capital against total risk-weighted assets standing at 16.5%, which is 2.0% above the statutory minimum of 14.5%.
2. Innovative Customer Delivery Platforms
Through the bank’s multi-channel strategy, it has successfully moved 88% of all customer transactions to alternative delivery channels that include self-service kiosks in 155 branches, an expanded 24-hour contact centre, mobile banking, 585 ATMs, internet and over 11,600 Co-op Kwa Jirani banking agents.
A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve 8.2 million Account-holders across all sectors.
Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with over 4.3 Million customers registered and 1.2 million loans worth over KSh 5.1 billion disbursed as at the close of Q1 2019.
Over 26,800 customers have taken up the rolled out MSME packages that in 2018 and 1600 have been trained on business management and planning.
We have earmarked KSh 15.2 billion for MSME lending and to date we have disbursed KSh 3.2 billion under the program.
These include 24,167 mobile unsecured business e-loans and 450 supply-chain loans disbursed in Q1 2019 alone.
Our unique model of retail banking services through Sacco FOSAs enabled us provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards.
3. Regional Expansion Co-operative Bank of South Sudan
This is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit before tax of KSh 41.7 million in Q1 2019 which was 28.7% higher than KSh 32.4 million posted in 2018.
4. Corporate Social Responsibility Programs
Co-op Bank Foundation has provided Scholarships for 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.
The foundation is fully funded by the bank and has so far supported 7,689 students since the inception of the program.
The Co-operative Bank Group will continue to deliver good performance as it focuses on the growing the 8.2 million account-holder base, digital banking, the basket of innovative financial solutions, efficient delivery of services and multichannel access to retain market position and deliver business growth and profitability in the days ahead.
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