Co-op Bank Posts Ksh22.6B Profit in Their Best Year Ever

Co-operative Bank recorded its strongest performance ever in 2021, its full year results reveal. The firm saw profit before tax grow 59% to hit Ksh22.6 billion up from Ksh14.3 billion in 2020. Net profit increased to Ksh16.5 billion up from Ksh10.8 billion in 2020.

The Board of Directors recommended a dividend payment of Ksh1/= per share, with the dividend payout totaling Ksh5.9 billion. The bank highlighted the implementation of its universal banking model as a key driver of growth.

It has moved 94% of all customer transactions to alternative delivery channels which include mobile banking, 561 ATMs, internet banking and over 26,000 Co-op Kwa Jirani agency banking terminals.

It has also focused on digital banking. Their Mco-op Cash Mobile Wallet now has 5.3 million customers and is disbursing, on average, Ksh6 billion a month in loans. The bank also cited its support of SMEs and partnership with saccos to offer retail banking services.

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Total operating income grew by 12% from Ksh53.8 billion to Ksh60.4 Billion. Total non-interest income grew by 11% from Kshs 17.5 billion to Kshs 19.4 Billion while Net interest income increased by 13% from Ksh36.3 Billion to Ksh41.0 Billion.

Total operating expenses rose by 3% from Kshs 39.4 Billion to Kshs. 38.1 Billion. In 2021, Co-op also increased its investment in government securities to Ksh184.1 Billion from Ksh161.9 Billion in 2020.

Total Assets grew to Ksh579.8 Billion, an 8% rise from the previous year. Net loans and advances book grew to Ksh310.2 Billion, representing +8% growth from Ksh286.6 Billion the previous year.

Among its subsidiaries, Co-op took a hit in South Sudan. Co-operative Bank of South Sudan, a joint venture (JV) with the Government of South Sudan (Co-op Bank 51% and GOSS 49%), returned a monetary loss of Ksh421.7 Million in FY2021 attributable to hyperinflation due to currency devaluation of the South Sudanese pound.

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