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The Co-operative Bank Group announces a Profit before Tax of Sh17.7 billion for full year 2016 compared to Sh5.4 billion recorded in 2015, a 15% growth.

Profit after tax for the Group was Sh12.7 billion compared to Sh11.7 billion in the previous year, representing an 8.5% growth rate.

The good performance in a tough operating environment is mitigated by the gains from the bold “Soaring Eagle” Transformation Project that the bank has been implementing since 2014 with a clear focus on improvement in operating efficiencies, sales force effectiveness and innovative customer delivery platforms.

The Transformation Agenda has enhanced Cost to Income Ratio from a high of 59.0% in 2014 to 52.1% in 2016.

SEE ALSO: Co-operative Bank acquires Jamii Bora Bank LTD

Total interest income grew by 15% from Kshs 36.8 billion to Kshs 42.3 billion on account of; Interest income from government securities growth by 40% from Kshs 6.1 billion to Kshs 8.5 billion and Interest income from loans & advances growth by 11% from Kshs 30  billion in 2015 to Kshs 33.4 billion in 2016.

Total interest expense reduced by 6% from Sh13.6 billion to Sh12.8 billion on account of lower cost of funding while total operating income grew by 16% from Sh36.4 billion to Sh42.3 billion.

Total assets grew by Sh9.5 billion (+3%) to Sh352 billion compared to Sh342.5 billion in the same period last year.

Net loans and advances book grew by Sh23.5 Billion (+11%) to Sh236.9 billion compared to Sh213.4 billion in the same period last year as total deposits declined slightly by 2% from Sh268.8 billion to Sh263.6 billion.

Shareholders’ funds grew from Sh50.2 billion to Sh61.3 billion, an impressive growth of 22%, supported by the Board of Directors sustained policy to aggressively recapitalize the bank for regional expansion leveraging on retained earnings.

SEE ALSO: Sacco, lender in instant ATMs pact

A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve 6.2 million Account-holders across all sectors supported by our multichannel strategy that includes 148 Branches, over 8,000 Co-op Kwa Jirani Banking Agents and over 580 ATMs.

Key focus on digital banking with the all telco Mco-op Cash Mobile Wallet has continued to play a pivotal role in the growth of non-funded income with over 3.2 Million customers.

Co-operative Bank banking mobile banking
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