Co-op Bank disburse Sh12.6billion to SMEs through Mobile E-Credit solution
Co-operative Bank Group has disbursed Sh12.6 billion in small business loans as it works with Small and Medium Enterprises (SMEs) to ensure the bank maintains borrowers.
The Group CEO Gideon Muriuki said over 162,000 customers have taken up the MSME packages that they rolled out in 2018, and 26,943 have been trained on business management skills.
“Year to date, we have disbursed Sh12.6 billion to MSMEs through our Mobile E-Credit solution. MSMEs are a critical part of economic recovery post-covid and contribute up to 16 per cent of our total loan book,” he said.
The lender says they have ensured that they maintain loan book quality even as the lender ups loans to the private sector.
The lender has also leveraged development partners for cheap credit for on-lending with external funds from development partners standing at Sh41.4 billion.
Co-operative Bank’s half-year to June net profits jumped 55.4 per cent to Sh11.5 billion on strong growth in customer lending and payment charges.
The jump from Sh7.4 billion in a similar period last year was propped by an 11.8 per cent growth in net interest income from Sh18.8 billion to Sh21.1 billion.
The bank’s loan portfolio grew from Sh29 billion to Sh330 billion as the bank slowed down on government lending in favour of the private sector.
