Kenya: Co-operative Bank Group has announced a 2.5 per cent growth in pre-tax profit for the nine months to September 30.
The bank’s profit before tax (PBT) increased to Sh9.13 billion from Sh8.91 billion over a similar period last year, and was buoyed by growth in interest income and transaction-based income.
Group Managing Director Gideon Muriuki said the bank is set to further grow its balance sheet and profitability in the coming years on the back of an expanding customer base and diversified product offerings.
The bank is also pegging its expansion on its mobile wallet, M-Co-opCash, which enables both customers and non-customers to open accounts, make utility payments and apply for loans from their mobile phones.
In a statement yesterday, Dr Muriuki said the group has engaged leading global advisory firm Mckinsey& Company to carry out a growth and efficiency review. The review will focus on optimising the bank’s organisational structure, productivity, efficiency and ability to generate higher revenues.
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The country’s third-largest lender by asset base has embarked on a new growth phase, with a keen eye on regional markets.
“The bank looks at maximising the massive investment made the last three years in an expansive network, with more than 140 branches, 8,066 banking agents and well over 4.9 million accounts,” said Muriuki.
Non-funded income
According to the group’s unaudited financial statements released yesterday, net loans and advances grew 31 per cent to Sh175.97 billion from Sh134.3 billion over a similar period last year.
Total assets increased 18.3 per cent to Sh270.6 billion from Sh228.8 billion, while customer deposits increased 11 per cent to Sh200.4 billion.
Non-funded income grew 23.8 per cent to Sh8.45 billion, driven mainly by mobile banking, automated teller machine (ATM) commissions, personal and business banking commissions, agency banking, Internet banking, forex income and letters of credit.
“The bank is aggressively pushing commissions’ income with the recently launched M-Co-opCash,” added Muriuki.
Net interest income increased by 8.8 per cent to Sh20.86 billion from Sh19.16 billion, while fees and commissions on loans and advances went up 20.4 per cent to Sh1.61 billion from Sh1.34 billion.
Total operating expenses increased 13.9 per cent even as the bank maintained its focus on cost management.
