Co-operative Bank records Sh12.7 billion in after tax profit

Co-operative Bank Group CEO Gideon Muriuki. 

Co-operative Bank has announced an 11 per cent growth in after-tax profit for the period ending December 31, 2018, from Sh11.4 billion recorded in 2017 to Sh12.7 billion.

The bank said on Thursday its full-year 2018 pretax profit rose 11 per cent from Sh16.4 billion recorded in 2017 to Sh18.2 billion.

Total interest income improved by 7 per cent from Sh40.37b to Sh43.02 billion and Interest income from loans and advances increased by 3 per cent from Sh31.94 billion to Sh32.95 billion.

The bank's growth in profit is attributed to increase in interest income from government securities by 19 per cent from Sh8.21 billion the previous year to Sh9.79 billion.

However, it's loan book shrunk to Sh245.42 billion from 253.86 billion in 2017.

The Group Managing Director and CEO Gideon Muriuki said the bank is expected to continue delivering a strong performance.

"The Co-operative Bank Group will continue to deliver strong performance as we focus on the growing 8 million account-holder base, digital banking, the basket of innovative financial solutions, efficient delivery of services and multichannel access to retain market position and deliver business growth and profitability in the days ahead," he said.

The bank said it has successfully moved 91 per cent of all customer transactions to alternative delivery channels, these include self-service kiosks in 155 branches, 24-hour contact center, mobile banking, 580 ATMs, internet and over 11,000 Co-op Kwa Jirani banking agents.

The Board of Directors has 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. This will represent a growth of 25 per cent compared to a dividend of Sh0.80 paid in 2017.

Co-operative Bank is the fifth tier one bank to announce its full-year earnings for 2018 to include announcements by Stanbic Bank, KCB, and Barclays Bank. The banks have in total grown their revenues to Sh48.4 billion in the 2018 financial year.