Coop Bank half year profit hits Ksh.10.4B
The Co-operative Bank of Kenya has posted a Profit before Tax of Kshs.10.44 Billion for the first half of 2019 compared to Kshs.9.98 billion recorded in the first half of 2018.
The 5% improvement has been achieved despite the challenging economic environment. Profit after tax was Kshs 7.5 Billion compared to Kshs 7.1 Billion in the previous year.
Co-operative Bank of South Sudan that 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 Kshs 93 Million in Q2 2019 which was 19% drop compared to Kshs 115 Million posted in 2018.
Co-op Consultancy & Insurance Agency contributed Kshs 353.3 million as at 30th June 2019. while Co-op Trust Investment Services has aggressively grown the funds under management to almost Ksh 100 billion.
The bank closed the quarter on a sound capital base, with adjusted total capital against total risk-weighted assets standing at 16.7%, which is 2.7% above the statutory minimum of 14.5%.
Total assets grew by Kshs 31.2 Billion (+8%) to Kshs. 430 Billion compared to Kshs 398.4 Billion in the same period last year.Net loans and advances book grew by 3% from Kshs.252.1 to Kshs. 257.6 billion. Investment in Government securities grew by Kshs.14.8 billion (+18.4%) to Kshs. 95 billion compared to Kshs. 80.2 billion in the first half of 2018.
Speaking, the group CEO, Gideon Muriuki said the Group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge.
He said that set strategies will increase the customer base and reach out to every co-operative movement.
“The Group has continued with a strategy for continued deepening and dominance in our domain market segment while reviewing opportunities to grow alternative revenues from other services like Bancassurance, and Leasing business being done through Co-op Bank Fleet Africa Leasing Ltd, a strategic joint venture with Super Group of South Africa,” he said.
He noted that through a multi-channel strategy, the Bank has successfully moved 88% of all customer transactions to alternative delivery channels that include mobile banking, an expanded 24-hour contact centre, 585 ATMs, internet and over 12,956 Co-op Kwa Jirani banking agents.
The report further stated that over 46,700 customers have taken up the rolled-out MSME packages that we launched in 2018 and 3600 have been trained in business management and planning.
“We have earmarked Kshs 15.2 billion for MSME lending and to date disbursed Kshs 3.4 billion under the program. These include 80,249 mobile unsecured business e-loans and 1,162 supply-chain loans disbursed in first half 2019 alone, “the report stated.
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