Cooperative Bank Group has posted a 12.6 per cent growth in net profit for the year ended December 31 on its ‘Soaring Eagle’ strategy that has given it a competitive edge.
The listed lender which is in the race to acquire Jamii Bora Bank recorded an after-tax profit of Sh14.3 billion up from Sh12.7 billion in 2018.
Its gross profits rose to Sh20.7 billion up from Sh18.2 billion in the previous financial year as it deepened the financial inclusion model rooted in over 15 million members of the cooperative movement in the country.
The banks’ total operating income grew 10.9 per cent to Sh48.5 billion up from Sh43.7 billion in 2018. This is attributed to growth in total interest income that rose to Sh43.6 billion and growth in interest income from government securities that rose 16 per cent to Sh11.4 billion.
Coop Bank’s total asset value grew by 10.5 per cent to Sh457 billion up from Sh413.4 billion last financial year and is expected to rise further on the acquisition of Jamii Bora Bank.
Net loan advances rose by 8.7 per cent to Sh332.8 billion from Sh306.1 billion in 2018.
The bank announced that it has successfully moved 90 per cent of customer transactions to alternative channels that include self-service kiosks in 159 branches, 24-hour contact centres, mobile banking, 583 ATMs and 16,700 agents.
The bank’s subsidiaries including the Co-op Trust Investment Service recorded over 100 per cent growth, growing fund under management to Sh102.1 billion compared to Sh40.1 billion in the previous financial year.
In a statement accompanying financial results, Co-op Bank Group MD Dr. Gideon Muriuki said the bank has continued to leverage on successful penetration banking services in the country while reviewing opportunities to grow alternative revenue streams.
The board has recommended for approval a dividend payout of Sh1 per ordinary share.