Cooperative Bank records Sh15.2 billion profit before tax

NAIROBI, KENYA: Cooperative Bank has recorded Sh15.2 billion profit before tax in the third quarter of 2016.

The profit represents a 25.2 percent growth compared to the one realised in a similar period last year.

Profit after tax for the Group was Shs10.5 billion compared to Shs8.6 billion in the previous year, representing a 22.3 percent growth rate.

The sustained good performance is attributable to the realisation of gains arising from the bold transformation project that the bank has been implementing since 2014 with a critical focus on improvement in operating efficiencies, sales force effectiveness and innovative customer delivery platforms.

“Operational efficiencies resulting from the Transformation project have seen our cost-to-income ratio improve from a high of 53.2 percent in Dec 2015 to 47.1 percent in September 2016,” Gideon Muriuki, Group managing director said.

Co-operative Bank of South Sudan that is a unique Joint Venture partnership with Government of South Sudan (Co-op Bank 51 percent and GOSS 49 percent) successfully contributes to the Group’s bottom line having made a profit of Kshs.45.12 million in Q3 2016.

The Bank’s regional expansion strategy will involve similar Joint Venture models in other countries notably Rwanda, Uganda, Tanzania and Ethiopia in the next 5 years.