Co-op reports strongest profit growth at 52pc

NAIROBI, Kenya, March 17 – The Co-operative Bank of Kenya has reported its highest ever profit growth after posting a 52% increase in net profit for the full year ending December 2021 .

The Bank’s Managing Director, Gideon Muriuki, called it an improved performance, which he said was due to improved lending, in line with the group’s strategic focus on sustainable growth and transformation.

“The Co-operative Bank Group continues to execute a proactive growth strategy anchored on a strong enterprise risk management framework and deepening our market leadership,” he said.

Growth was driven by higher operating profit which rose 12% to 53.8 billion shillings, while total operating expenses reached 38.1 billion shillings, an increase of 3 %.

Business performance was also boosted by the acquisition of Kingdom Bank Limited (formerly Jamii Boar Bank) which generated pre-tax profit of Sh512.4 million.

Co-op Trust Investment Services contributed 140.4 million shillings in profits

The company’s net interest income rose 13% to 41.0 billion shillings, while non-interest income was 19.4 billion shillings, a growth of 11%.

The bank’s total assets rose 8% to 579.8 billion shillings, underscoring the firm’s steady growth which was further boosted by a 14% growth in investments in government securities which s amounted to 184.1 billion shillings in 2021.

Total customer deposits grew by 8% while shareholder funds maintained 10% growth to 11.2 billion shillings.

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The board has recommended a dividend payment of Shs.1 per share.

Kariuki noted that the bank’s implementation of sales force efficiency enabled it to serve more than 9 million account holders while 94% of customer transactions were transferred to alternative distribution channels. .

The strong penetration of the bancassurance business enabled the cooperative advisory and bancassurance intermediary to post a pre-tax profit of 803.9 million shillings.

Nevertheless, the Cooperative Bank of South Sudan recorded a monetary loss of Kshs 421.7 million in the 2021 financial year attributable to accounting for hyperinflation due to the devaluation of the South Sudanese pound.

The bank is a unique Joint Venture (JV) partnership with the Government of South Sudan, with Co-op Bank 51 holding a 51% share and the former holding 49%.