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Kenya’s Co-op Bank posts 41 per cent profit increase

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Co-operative Bank Group has recorded a 41 per cent pretax profit f Sh 15Billion for the full year ended December, 2015 up from Sh10.92billion the Kenyan lender recorded in 2014.

The Group’s profit after tax rose to Sh 11.7 billion compared against Sh8.01 billion it posted the previous year – representing a 46 per cent growth.

The bank attributed the growth on the back of gains from the ‘Soaring Eagle’ transformation project that it started its implementation in 2014 with critical focus on improving operational costs, reduced operating costs and improved customer delivery platforms.

Chief Executive Gideon Muriuki while releasing the results said the lender expect to realize more gains this financial year.

Total assets grew by 20 per cent to Sh342.5 billion compared to Sh 285.4 Billion in 2014, while net loans and advances book grew by 16 per cent to Sh 208 billion from Sh 179 billion.

Shareholders’ funds grew to Sh50.2 billion from Sh43.3 billion – a growth of 16 per cent, supported by steady growth in earnings and a progressive growth dividend policy.

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Through the multi-channel strategy the bank has successfully reduced the number of customers with one product from 75 per cent to 70 per cent as at the end of 2015 and also ensured 68 per cent of the bank transactions are done through alternative delivery channels.

Banc assurance has grown tremendously by over 87 per cent contributing to the non-funded income base.

Co-operative Bank of South Sudan on a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51 per cent and GOSS 49 percent) has successfully contributed to the bottom line having made a Profit before Tax of Sh849.7 million in 2015.

The Bank is planning on a regional expansion which will involve similar Joint Venture models in other countries notably Rwanda, Uganda, Tanzania and Ethiopia in the next 5 years.

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