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Kenya's Co-operative Bank plans to make all branches profitable

NEWS
By Jackson Okoth | Jun 1st 2015 | 2 min read
By Jackson Okoth | June 1st 2015
NEWS

Co-operative Bank has put plans in place to sustain its growth momentum and profitability. Group Chief Executive Gideon Muriuki said the future is promising on account of the growth strategies they have put in place, including the full execution of the 'Soaring Eagle' transformation agenda.

He projects that the financial institution will make profit in all the branches countrywide.

"The Group is looking at a growth in profit before tax of up to 30 per cent in 2015, a growth in loans and advances of between 25 per cent and 30 per cent and a growth in customer deposits of between 20 to 25 per cent," he said.

The bank maintained a dividend track record on the back of sustained profitability, with the year 2014's profit before tax, when adjusted for exceptional items of Sh1.34 billion and a one-off staff redundancy cost standing at Sh10.92 billion.

The group embarked on the 'Soaring Eagle' transformation project last year to improve operational efficiencies, cost management and increase frontline productivity.

Coming quarters

Key performance indicators have since reported an upswing in trend, which is expected to be sustained in the coming quarters. "We are confident this transformation project will be executed and deliver on objectives, as is already being reflected in our great results of quarter one this year."

Muriuki told shareholders last week during the bank's AGM at Bomas of Kenya that the group had begun to reap the benefits of the transformation agenda as reflected in quarter one performance.

The group reported a 30 per cent jump in profitability to Sh4.5 billion from Sh3.47 billion in the same period last year. During the AGM Julius Sitienei and Rose Simani were elected for another term of three years and  Lawrence Karissa and John Murugu as additional independent directors.

He said Co-op Consultants have been instrumental in the revival of Saccos in the country. "The Co-op Consultants have been behind the revival and restructuring of more than 580 Saccos across the country and their efforts have borne fruit for the 12 million Sacco movements in Kenya," said Muriuki.

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