Co-operative Bank saw its net for profit for the nine months to September 2022 rise 47 percent to Ksh17 billion compared to Ksh11.6 billion in a similar period last year, driven by steady growth in non-interest and interest income which increased by 28.2 percent and 10.5 percent to Ksh20 billion and Ksh43.7 billion respectively.
Co-o bank’s loan book grew 9.4% to Ksh335.1 billion. The bank cut lending to government as investments in government debt securities slid 5.6 per cent to Ksh182.3 billion.
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Co-op Bank CEO Gideon Muriuki hailed the performance highlighting returns for shareholders.
“The performance delivers a competitive return on equity of 23 per cent to our shareholders,” he noted, further observing that all of the bank’s subsidiaries including South Sudan were profitable in the period under review. Co-op Bank formed the Co-operative Bank of South Sudan in 2013, holding a controlling 51% stake in a joint venture with the South Sudanese government.
Increased staff costs drove Co-op bank’s total operating expenses in the nine months to September up six per cent to Ksh29.6 billion. Customer deposits increased 2.7 per cent to Ksh432 billion, driving interest expenses up 7.2 per cent to Ksh11.6 billion.
In a pointer to improved efficiency, the bank’s cost-to-income ratio however improved to 45.8 per cent from 49.3 per cent. Co-op bank continued its digital transformation in in line with industry trends in the period under review, shifting more transactions to digital channels and away from brick-and-mortar banking halls.
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“Through our digital channel strategy, the bank has successfully moved 94 per cent of all customer transactions to alternative delivery channels, a 24-hour contact centre, mobile banking, 550 ATMs, Internet banking and a wide network of Co-op Kwa Jirani agents,” Muriuki noted in a statement.
Muriuki also announced a Ksh150 million humanitarian contribution from the bank to help combat the drought in parts of the country, which has left many at risk of extreme hunger.
“Co-op Bank wishes to join other Kenyans and indeed the global community of goodwill in fully supporting the fundraising appeal initiated by His Excellency the President, with a key contribution of Sh150 million to support relief efforts aimed at assisting families affected by the severe drought ravaging various parts of the country,” he said.
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