Co-operative Bank has posted a profit of Ksh 3.6 billion in the first three months of the year. This has also seen the Bank’s shareholders grow their wealth by 12.7 % within the same period.
The Gideon Muriuki led bank has attributed the growth to its strong digital channels and a 12.5 per cent growth in operating income catapulted by activities of vibrant Sacco movement in the country.
Most Saccos paid dividends to members during the quarter under review.
The fourth largest Bank in the country has successfully moved almost 90 per cent of all customer transactions to alternative delivery channels and expanded 24-hour contact centre, mobile banking, 584 ATMs, internet, and over 16,700 Co-op Kwa Jirani banking agents through its multi-channel strategy.
The lender’s MCo-opCash Mobile Wallet played a pivotal role in the growth of non-funded income with 5.6 Million customers registered and loans worth over Sh16 billion disbursed during the quarter.
The Group’s gross profit stood at Sh5.1 billion with operating income rising to Sh12.5 billion compared to Sh11.1 billion in the corresponding quarter last year.
Total non-interest income increased by 19 per cent to Sh5 billion compared to Sh4.2 billion.
The lender’s operating expense, however, grew 20.6 per cent to Sh7.3 billion compared to Sh6 billion on account of higher loan provision and staff expenses.
‘’The Group notes the strong performance in the first quarter of this year, and continues to pay close attention to the enormous challenge posed by Covid-19 with a view to sustaining full and uninterrupted business operations in the days ahead,’’ Coop Bank Group managing director Gideon Muriuki said.
He added that the group has noted the historically unique operating environment occasioned by the pandemic, which has brought about unprecedented economic and social disruption throughout the world.
‘’In this regard, we continue to leverage our digital channels while ensuring that all branch outlets remain open to offer service, with due regard to the health and safety of both customers and bank teams,’’ Muriuki said.
In March, the Central Bank of Kenya approved the Group’s plan to acquire 100 per cent of Jamii Bora Bank Ltd whose total assets sit at Sh12.5 billion.
This could see Coop Bank close its asset gap with third-placed NCBA, which on Wednesday reported asset growth to Sh509.6 billion in a quarter, ended March 31, 2020.
Coop Bank Group’s total assets grew by 10.5 per cent to Sh470.4 billion in the quarter under review compared to Sh425.7 billion the same period last year.