Co-operative Bank makes Sh7 billion profit

Cooperative Bank Group CEO Gideon Muriuki
NAIROBI, KENYA: Cooperative Bank Group’s profit after tax jumped 7.6 per cent to Sh7.1 billion in half year 2018 compared Sh6.6 billion recorded same period in the previous year.

The bank said improving business environment compared to last year presents an opportunity for further improvement.

At the same time, the Board of Directors of the Co-operative Bank has approved a key Sh200 million capital injection in the share capital of the Kenya Mortgage Refinance Company (KMRC) which will be a key driver in mobilising affordable financing for the Presidents Housing Agenda under the Big Four.

The lender’s profit before tax rose to Sh9.98 billion compared to Sh9.3 Billion recorded in a similar period in 2017, representing 7.6 percent growth

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“This is a commendable performance in an operating environment that is gradually recovering from the significant headwinds that business had to contend with in the aftermath of the 2017 Elections,” said it Chief Executive Officer Gideon Muriuki.

“The performance represents the tangible benefits arising 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,” he added.

During the period, Co-operative Bank of South Sudan that is a unique Joint Venture partnership with Government of South Sudan (Co-op Bank 51 per cent and GOSS 49 per cent) made a Profit before tax of Sh114.6 Million compared to a marginal loss of Sh60,000 in the first half of 2017.

The bank and the Co-operative Movement/Saccos (that predominantly own the Bank) expect to be key partners with the Government and will play a critical role on this key social/economic agenda.

“The Co-operative movement and especially Saccos have proven their capability in enabling Kenyans own homes in an affordable fashion. We expect the Co-operative Bank and Saccos to play a major role in bridging Kenya’s housing deficit now that the Government under the Big Four Agenda has made access to affordable housing a key priority,” said Co-op Bank Group Managing Director and CEO Dr Gideon Muriuki.

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