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Co-op Bank posts 11pc profit jump

Zachary Ochuodho @zachuodho

Co-operative Bank has achieved another year of strong performance with a net profit of Sh12.7 billion for the financial period ended December 31, 2018 on the back of increased interest income from government securities, loans and credit facilities.

Focus on digital banking with the all-telco Mco-op Cash Mobile Wallet, which has continued to play a pivotal role in the growth of non-funded income, buttressed the  11.4 per cent rise in the profit, up from Sh11.4 billion, as at the end of December 2017.

Interest income

Total interest income improved by seven per cent from Sh40.37 billion to Sh43.02 billion on account of interest income from government securities increasing by 19 per cent from Sh8.21 billion to Sh9.79 billion and interest income from loans and advances increasing by three per cent from Sh31.94 billion to Sh32.95 billion.

The group’s financial results for the year under review, indicates that pre-tax profit stood at Sh18.2 billion compared to Sh16.4 billion realised in 2017.

Co-op Bank Group Managing Director Gideon Muriuki said innovative customer delivery platforms have enabled the institution to successfully move 91 per cent of all customer transactions to alternative delivery channels.

The channels include self-service kiosks, an expanded 24-hour contact centre, mobile banking, 580 ATMs, internet and more than  11,000 Co-op Kwa Jirani banking agents. “The platforms have enabled the group to serve over eight million account holders across all sectors of development in the region,” Muriuki said.

“Our unique model of retail banking services through Sacco front office service activities (FOSAs) enabled us to provide wholesale financial services to over 464 FOSA outlets, and issue over one million Sacco-Link cards,” he said during a briefing in Nairobi.

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