Co-operative Bank profit jumps 32% to Ksh6.24bn

Co-operative Bank of Kenya has reported a 32.20% increase in after-tax profit to Ksh6.24 billion for the six-month period ended June 30th.  This was attributed to increased interest earnings and cost-cutting measures.

This gives it a higher growth in post tax income among the other banks that have released this year’s half year financial results. KCB grew 13.10% to Ksh9.24 billion while Equity reported a 11.88% increase to Ksh8.57 billion . 

 Co-op Bank managing director Gideon Muriuki said the rise in profitability resulted from 18.53% increase in net interest to Ksh11.77 billion, while retrenching of 160 staff in December and enhanced digitisation of its operations reduced the cost of operations by 4.03% or Ksh380 million to stand at Ksh9.06 billion.

Mr Muriuki said the engagement of US consultancy firm, McKinseyn in August last year helped put the publicly traded company on a “bigger Pedestal for growth” through marketing of a “basket of products rather than a product”. 

“We are going through a branch transformation and if you come to some of our branches, you will be served in five minutes,” he said. “This is because we have diverted over 65 per cent of our transactions to alternative banking channels – agents, ATM, Internet and mobile banking.”

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