Cooperative bank’s posts Sh13.7 billion profit for third quarter 2017

Cooperative bank of Kenya has recorded a Sh1.5 billion pre-tax drop in profits for its third quarter 2017 results compared to the same period in 2016.

The third biggest bank by asset volume in Kenya joins a league of major lenders and businesses which has seen their profits shrink, posting a Sh9.5 billion profit after tax up from Sh10.5 billion in the previous year.

The group’s managing director, Gideon Muriuki has termed the results ‘a commendable performance’ owing the shrink to a tight operating environment with the capping of interest rates and the general economic slowdown in an election year.

Despite the drop, the group in its quest to achieve a long-term profitability has moved 86 percent of its customer transactions from traditional banking to rake in profits from mobile banking, internet and agency outlets

Co-operative House, Haile Selassie Avenue. Photo:Courtesy

In South Sudan where the lender operates a joint venture with the Government of South Sudan, the bank made a profit of Sh30 million.

“The group is alive to both the challenges presented by the operating environment, and also the wide opportunities offered by Kenya’s growing economy. We have put in place strategies to sustain the business on a growth trajectory in the long-term,” said Muriuki.