The Co-operative Bank Group on Thursday reported a pre-tax profit of Sh14.65 billion for the nine months up to September 30, 2018 compared to Sh13.74 Billion recorded in the same period last year. A growth of 7 per cent against the backdrop of a challenging economic environment in the period.
Profit after tax was Sh10.31 billion compared to Sh9.54 billion in the previous year, an 8 per cent growth.
The commendable performance is an affirmation of the Transformation Agenda which has re-tooled and equipped the business with the strategic agility and resilience to achieve set objectives even in the difficult trading environment; the future can only be brighter with the much improved fortunes in our domain operating environment that is on an upswing.
The Group continues to leverage on the benefits arising from the “Soaring Eagle” Transformation Project that the bank has been implementing since 2014, with a clear focus on improvement in Operating Efficiencies, Salesforce Effectiveness and Innovative customer delivery platforms.
Key financial highlights:
- 1 Tottenham suffer Sh9billion net loss as COVID-19 hits revenue
- 2 Co-op Bank profit cut by loans cover
- 3 Co-op Bank, Absa profits drop on account of Covid-19
- 4 Safaricom profit drops to Sh33 billion
- Profit & Loss
Total interest income improved by 3.5 per cent from Sh29.85 billion to Sh30.89 billion on account of Interest income from government securities increasing by 13.5 per cent from Sh6.12 billion to Sh6.95 billion and Interest income from loans and advances increasing by 1 per cent from Sh23.58 billion to Sh23.77 billion.
Total interest expense remained tightly controlled, increasing marginally by 1 per cent from Sh9.08 billion to Sh9.15 billion on account of a 3 per cent growth in deposits.
Total operating income grew by 5 per cent from Sh30.91 billion to Sh32.32 billion.
- Balance sheet
Total assets grew by Sh15.85 billion (+4 per cent) to Sh404.15 Billion compared to Sh388.30 billion in the same period last year.
Net loans and advances book declined marginally (-2 per cent) to Sh 254.21 billion compared to Sh259.39 billion in the same period last year.
Investment in Government securities grew by Sh15.16 billion (+22 per cent) to Sh83.25 billion compared to Sh68.09 billion in 2017.
Total deposits grew by 3 per cent from Sh290.19 billion to Sh297.60 billion
Borrowed funds from development partners dropped by Sh2 billion (-7 per cent) to Sh25.98 billion compared to Sh27.99 billion in the same period the previous year. This was as a result of an installment payment to the debt provider.
Shareholders’ funds grew to Sh70.89 billion supported by a steady growth in retained earnings.
- Innovative Customer Delivery Platforms
Through our multi-channel strategy, the Bank has successfully moved almost 90 per cent of all customer transactions to alternative delivery channels that include Mobile Banking, a 24-hour contact centre, 580 ATMs, Internet Banking and over 11,000 Co-op Kwa Jirani banking agents.
A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group increase the client base to over 7.6 million account-holders across all sectors.
Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with over 3.9 Million customers registered.
Our unique model of retail banking services through Sacco FOSAs enabled us provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards.
- Regional Expansion
Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51 per cent and GOSS 49 per cent) made a remarkable Profit before tax of Kshs 235.12 Million in Q32018 compared to a profit of Kshs 39.15 Million in the corresponding period in 2017.
- Corporate Social Responsibility Programs
Co-op Bank Foundation has provided Scholarships for gifted but needy students from all regions of Kenya. The sponsorship includes; fully-paid secondary education, full fees for University education, Internships and career openings for beneficiaries. The foundation is fully funded by the bank and has so far supported 6,331 students since the inception of the program in 2007.
The Group was recognized by the Europe, Middle East and Africa Finance (EMEA Finance) - African Banking Awards 2018 as the Best Bank in Kenya and Best Product Launch in Africa (MCo-op Cash v4.0 update).
The Group was also recognised by Banker Africa East Africa Awards 2018 with three key awards, namely the Best Retail Bank in Kenya, The Best SME Bank in Kenya and the Best Investment Institution in Kenya. This is a re-affirmation of the bank’s unique position as a bank that positively influences the lives of the majority of Kenyan citizens.
The Co-operative Bank Group plans to deepen its product offering through Sales Force Effectiveness to the 7.6 million account-holder base, digital banking, the basket of innovative financial solutions, efficient delivery of services and multichannel access to grow market share.