Co-op Bank posts Sh20.7 billion profit
News
By
Brian George
| Mar 19, 2020
The bank invested, Sh117.80 billion, Sh37.53 billion more (46.8 per cent more) in 2019 compared to its investment in 2018 that stood at Sh80.27 billion
However, the bank’s interest expense remained under tight control, increasing marginally by Sh96 million from Sh12.24 billion to Sh12.34 billion. This was despite an 8.6 per cent growth in deposits indicating improved management of the cost of funds.
With Sh15.2 billion by the bank for Middle and Small Enterprises (MSME) lending, over 70,000 customers are reported to have taken up the MSME packages rolled out in 2018, and 5,000 have been trained on business management and planning.
Co-operative Bank has so disbused Sh8.05 billion to MSME.
The Board of Directors of Co-operative Bank on March 11 approved the progression of discussions with Jamii Bora Bank Limited, which if successful, would lead to the Co-operative Bank of Kenya Limited acquiring the 100 cent shareholding in Jamii Bora Bank Limited.
Jamii Bora Bank is a Kenyan bank incorporated under the Companies Act with over 350,000 customers in 17 branches and an asset base of Sh12.5 billion.
The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offerings to the enhanced customer base and create a niche bank to offer specialised credit offerings that include MSME Banking, Microfinance, Youth & Women Banking, Asset Finance, and Leasing.
The Board of Directors also recommended for approval by the AGM the payment of a dividend of Sh1.00 per every ordinary share held subject to approval by the Capital Markets Authority. Shareholders’ funds grew to Sh79.33 billion in 2019 (+13.6 per cent) from Sh69.86 billion in 2018.
Coop Bank runs four subsidiaries namely; Kingdom Securities Ltd, Co-optrust Investment Services Limited, Co-operative Consultancy Services (K) Limited and Co-operative Bank of South Sudan.
The Bank also owns a 24.8 per cent stake in CIC Insurance Group. The Bank’s footprint across Kenya and the region include; 155 branches in Kenya, four in South Sudan, 583 ATMs and over 16,700 Co-op Kwa Jirani agency banking outlets supporting a growing client base now standing at over 8.8 million account-holders
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