The Co-operative Bank of Kenya has recorded Sh24.7 billion pre-tax profit in the third quarter of 2023.
This is an 8.6 per cent increase compared to the same period for the third quarter of 2023.
In a statement, the Co-op Bank Group Chief Executive Gideon Muriuki said the strong performance of the bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.
The bank has recorded a total Assets growth of 6.3 per cent growth, from Sh622.1billion in the same period last year to Sh661.3billion.
On the other hand, the net loans and advances grew to a whooping Sh378.1billion, a 12.8 per cent growth from Sh335.2billion recorded last year while the customer deposits grew to Sh432.8billion, a marginal 0.2 per cent increase from Sh432.0 billion.
This week the bank was named the overall winner at the Kenya Bankers Association (KBA) Sustainable Finance Catalysts Award 2023.
Four times consecutively since 2017, Co-op Bank has been the overall winner of the award.
The award was created by KBA to recognize institutions that are practicing sustainable finance and have directly impacted the financial sector, economy, and environment in society.
“Sustainability is fully integrated into our business model that stands on the three pillars of Economic Sustainability, Social Sustainability, and Environmental Stewardship.” Muriuki stated.
“As a Bank that is predominantly owned by the 15 million-member Co-operative Movement that is represented in all regions of the country, we are inclusive by design, which has enabled us to not only deliver shared prosperity today but also helped us build an awareness and prudence to avoid participation in activities that risk putting future generations in jeopardy.” He added.
They have noted plans to garner fresh momentum in digital banking from their recent successful transition to the new system, Finance.
Co-op bank has a new deal provider Direct System platform on which the clearing of statements for coffee trades are conducted in the new coffee trading regime supervised by the Capital Markets Authority (CMA)
The Co-operative’s external funds from development partners have also increased by 56.5 per cent to Sh65.6billion from Sh41.9 billion in 2022 as the shareholders’ funds have also grown to Sh108.1 billion, a 7.1per cent increase from Sh100.9 billion in 2022.
Through the Co-operative digital channel strategy, the bank has successfully moved 91 per cent of all customer transactions to alternative delivery channels, a 24-hour contact centre, 608 ATMs and cash Deposit Machines (CDMs), mobile and internet banking, and over 18,000 networks of Co-op kwa Jirani agents.
“We have successfully migrated our customers to the Omni-channel, integrating accessibility and user experience. Our Omni channel interfaces online banking through personal computers, mobile phones, and USSD availing our services to all customers through their preferred channel yet retaining the same experience from wherever they are.” The statement read in part.
Mco-op Cash Mobile wallet continues to drive substantial non-funded income streams with 5 million customers registered and Sh59.4billion in loans disbursed year to date, averaging Sh6.6billion per month.
Over 193,000 customers have taken up the MSME packages we rolled out in 2018, and 42,413 have been trained in business management skills.
They have disbursed Sh15.9 billion to MSMEs through the Mobile E-Credit solution. MSMEs make up 15.5 per cent of their total Loan Book.
The Bank has grown the number of branches to 193 with 4 domiciled in South Sudan.
On the other hand, 8 new branches; Nakuru Bahati Road, Kimana, Matuu, Thika Kwame Nkrumah, Greenwood Mall – Meru, Kenol Makuyu, Hindi – Lamu, and Bamburi – Mombasa) were opened in 2023 while an additional 5 branches; Kabarnet, Iten, Kasarani, Kamakis and Chwele were opened last year.
The top-tier lender’s income interest has also increased by 2.1 per cent to Sh 20.6 billion compared to Sh20.2 billion in 2022.
