The Co-operative Bank Group has reported a pre-tax profit of Sh10.44 billion for the first half of 2019 compared to Sh9.98 billion recorded in a similar period in 2018. A growth of 5 per cent against the backdrop of a challenging economic environment in the period. Profit after tax was Sh7.5 Billion compared to Sh7.1 Billion in the previous year.
The Group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties, which has progressively deepened their Financial Inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya.
The Group is also employing a strategy for continued deepening and dominance in its domain market segment while reviewing opportunities to grow alternative revenues from other services like Bancassurance, and Leasing business being done through Co-op Bank Fleet Africa Leasing Ltd, a strategic joint venture with Super Group of South Africa.
The total operating income grew by 5 per cent from Sh21.8 billion to Sh23 billion.Non-interest income increased by 25 per cent from Sh7 billion to Sh8.8 billion while interest income from government securities increased by 22 per cent from Sh4.5 billion to Sh5.5 billion.The operating expenses remained controlled, growing by 5 per cent from Sh11.97 billion to Sh12.6 billion as a result of prudent cost management strategy and enhanced efficiency.
Total assets grew by Sh31.2 Billion (+8 per cent) to Sh430 Billion compared to Sh398.4 Billion in the same period last year.Net loans and advances book grew by 3 per cent from Kshs.252.1 to Sh257.6 billion.Investment in Government securities grew by Kshs.14.8 billion (+18.4 per cent) to Sh95 billion compared to Sh80.2 billion in first half of 2018.Customer deposits grew by 8.3 per cent from Sh300 billion to Sh325 billion while borrowed funds from development partners grew by Sh3 billion (+16 per cent) to Sh21.5 billion from Kshs.18.4 billion in the previous year.Shareholders’ funds grew from Sh68 billion to Sh71 billion.
The bank closed the quarter on a sound capital base, with adjusted total capital against total risk-weighted assets standing at 16.7 per cent, which is 2.7 per cent above the statutory minimum of 14.5 per cent.