Co-op Bank profits grow in H1 2019

Co-op Bank headquarters in Nairobi. The Bank posted a profit in H1 2019
Co-operative Bank headquarters in Nairobi. PHOTO/COURTESY

Cooperative Bank of Kenya has posted a pre-tax profit of Ksh. 10.4 billion in the first half of 2019 compared to Ksh. 9.98 billion registered in a similar period last year.

The five percent increment translates to the bank posting a Ksh. 7.5 billion profit after tax compared to Ksh. 7.1 billion in the first six months of 2018.

According to the bank, the increase in profits was as a result of the bank implementing an all rounded transformation strategy dubbed “Soaring Eagle” that has restructured the business to have an added competitive edge over rival banks.

“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,” the Group’s Managing Director and CEO Gideon Muriuki said in a statement.

The bank’s total operating income in the period under review grew by five percent from Ksh. 21.8 billion to Ksh. 23 billion while total non-interest income increased by 25 percent from Ksh. 7 billion to Ksh. 8.8 billion.

Interest income from government securities increased by 22 percent to Ksh. 5.5 billion up from Ksh. 4.5 billion recorded in a similar period last week. The bank’s total operating costs recorded a five percent increment to Ksh. 12.6 billion up from 11.97 billion in 2018 fueled mainly by effective cost management by the lender.

The bank’s total assets in the first six months of the year increased by Ksh. 31.2 billion to Ksh. 430 billion while the lender’s loan book grew by three percent to Ksh. 257.6 billion up from Ksh. 252.1 billion. Investments in government securities on the other hand grew by 18.4 percent to Ksh. 95 billion up from Ksh. 80.2 billion registered in the first half of 2018.

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