The Co-operative Bank Group has announced full financial year results for 2018 which indicate a profit of 18.2 billion compared to shs.16.4 Billion recorded in 2017.
Profit after Tax was Kshs 12.7 Billion compared to Kshs 11.4 Billion in the previous year.
Group Managing Director and CEO Dr Gideon Muriuki said the lender’s operating model has equipped the business with added resilience to achieve the set strategic objectives, as reflected in the commendable performance in the period under review.
” The Group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties, which has progressively deepened our celebrated Financial Inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya,”he said.
He added that total assets grew by Kshs 26.5 Billion (+7%) to Kshs. 413.41 Billion from Kshs 386.86 Billion recorded at the close of year 2017.
“Through our multi-channel strategy, the Bank has successfully moved 91% of all customer transactions to alternative delivery channels that include self-service kiosks in 155 branches, an expanded 24-hour contact centre, mobile banking, 580 ATMs, internet and over 11,000 Co-op Kwa Jirani banking agents,”he said.
The banks total interest income improved by 7% from Kshs 40.37 billion to Kshs 43.02 billion on account of; Interest income from government securities increasing by 19% from Kshs 8.21 billion to Kshs 9.79 billion and Interest income from loans & advances increasing by 3% from Kshs 31.94 billion to Kshs 32.95 billion.
Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit before tax of South Sudanese pounds (SSP) 897.3 Million in 2018 which was 368% higher than SSP 192 Million posted in 2017.
Mr Muriuki further regretted that Net loans and advances book declined marginally (-3%) to stand at Kshs. 245.41 billion compared to Kshs. 253.86 billion in 2017.
While borrowed Funds from development partners grew by Kshs. 2.79 billion (+13%) to Kshs 23.95 billion compared to Kshs.21.16 billion in 2017 while shareholders’ funds grew to Kshs. 69.86 billion in 2018 that enables the bank to continue to pitch for big ticket deals.