Co-op Bank posts Sh11 billion profit

Co-operative Bank group posted a Sh10.9 billion net profit in the third quarter (Q3) of 2019 driven by 33 per cent growth in non-interest income, which stood at Sh14.1 billion.

The Group posted a profit before tax of Sh15.45 billion in Q3 2019 compared to Sh14.64 billion it recorded in a similar period in 2018.

Speaking during a shareholders briefing, group managing director and chief executive Gideon Muriuki said total operating income grew by nine per cent from Sh32.3 billion in Q3 2018 to Sh35.2 billion.

Government securities

Muriuki said interest income from government securities increased by 18 per cent from Sh6.9 billion to Sh8.2 billion.

He said the bank would continue to deliver good performance to it’s growing 8.7 million account-holder base through 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.

During the period total assets grew by Sh36.6 billion to Sh440.8 billion compared to Sh404.2 billion in the same period last year, while the net loans and advances book grew by Sh14.7 billion from Sh254.2 billion to Sh268.9 billion.

Customer deposits grew by nine per cent from Sh296 billion to Sh322.5 billion

Muriuki said during the period borrowed funds from development and partners grew by Sh3.7 billion to Sh29.7 billion.

Shareholders’ funds grew from Sh70.9 billion to Sh73.9 billion.

The bank, Muriuki said, is focusing on small and medium enterprises. Already the bank has more than 56,800 customers who have taken up the rolled out MSME packages that were launched in 2018 and 4,000 who have been trained on business management and planning.

“We have earmarked Sh15.2 billion for MSME lending and to date we have disbursed Sh5.4 billion under the programme,” he said.