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Co-op Bank 2017 profits drops to Sh11.4b

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The Co-operative Bank has posted Ksh 11.4 billion in profit for the full year 2017, marking a marginal decline from the Ksh 12.7 billion it recorded in 2016.

In a statement, Group Managing Director and CEO Gideon Muriuki attributes the drop to a challenging operating environment which included interest rate caps and lower economic growth in an election year.

Net loans and advances book grew by Ksh 17 billion to Ksh 253.9 billion compared to Ksh 236.9 billion recorded the previous year as deposits grew by 9 percent from Ksh 263.6 billion to Ksh 287.7 billion.

During the financial year, the company was able to move 87% of all its customer transactions to alternative delivery channels that include mobile banking, 580 ATMs and over 9,000 Co-op Kwa Jirani banking agents.

Across the border, Co-operative Bank of South Sudan (a joint venture with the Government of South Sudan), made a profit before tax of South Sudanese Pounds 192 million which was 135% higher than Ssp82 million posted in 2016.

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“This performance however translated to a monetary loss of Ksh 603 million in 2017 attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudanese Pound,” Muriuki says.

The company’s Board of directors has recommended for approval the payment of Ksh 0.80 per ordinary share held subject to approval by Capital Markets Authority.

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