The Standard Group Plc is a multi-media organization with investments in media platforms spanning newspaper print operations, television, radio broadcasting, digital and online services. The Standard Group is recognized as a leading multi-media house in Kenya with a key influence in matters of national and international interest.

Standard Group Plc HQ Office,
The Standard Group Center,Mombasa Road.
P.O Box 30080-00100,Nairobi, Kenya.
Telephone number: 0203222111, 0719012111
Email: [email protected]

NEWS & CURRENT AFFAIRS

The Nairobian

Co-op Bank posts Sh20.7 billion profit

News

By Brian George | Mar 19, 2020

The Co-operative Bank of Kenya on Thursday reported a profit Sh20.7 Billion for full year 2019 which is an increase of 14 per cent compared to Sh18.2 billion recorded in 2018.

After tax, the bank’s posted a profit of Sh14.3 billion compared to Sh12.7 billion in the previous year, group Managing Director and Chief Executive Dr Gideon Muriuki announced.

Co-op’s total operating income grew by 10.9 per cent from Sh43.68 billion in the financial year 2018 to Sh48.46 billion in 2019.

Customers’ deposits grew by 8.7 per cent from Sh306.12 billion to Sh332.82 billion.

On the lendings, net loans and advances book grew by 21.31 billion (8.7 per cent) to stand at Sh266.71 billion compared to Sh245.41 billion in 2018. MCo-op Cash Mobile Wallet disbursed loans worth Sh43.1 billion in 2019. With the growth of a non-funded income, the MCo-op Cash Mobile wallet reported having 4.8 Million customers registered.

Borrowed Funds from development partners grew by Sh2.47 billion (10.3 per cent more) to Sh26.42 billion in 2019 compared to Sh23.95 billion in 2018.

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