Co-op reports its highest ever profit growth at 52 pc

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

The Bank’s Chief Executive Officer Gideon Muriuki termed it as the best performance which he said was driven by 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 of our market dominance,” he said.

The growth was driven by increased operating income which rose by 12 percent to Sh 53.8 billion while total operating expenses reported at Sh38.1 billion, a 3 percent rise.

The firms’ performance was also boosted by the acquisition of  Kingdom Bank Limited(former Jamii Boar Bank) which contributed a profit before tax of Shs 512.4 million.

Co-op Trust investment services contributed to Shs 140.4 Million in profits

The firm’s net interest income grew by 13 percent to Shs 41.0 billion while non-interest income stood at Shs 19.4 Billion, an 11 percent growth.

The bank’s total asset grew by 8 percent to Shs 579.8 billion highlighting the firm’s sustained growth which was further boosted by a  14 percent growth in investment in government securities which stood at Shs 184.1 billion in 2021.

Total customer deposits saw a growth of 8 percent while shareholder’s funds sustained growth of 10 percent to Shs 11.2 billion.

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

Kariuki noted that the bank’s implementation of the sales force effectiveness saw it serve over 9 million account holders while 94 percent of customer transactions were moved to alternative delivery channels.

The strong penetration of the Bancassurance business saw the Co-op Consultancy and Bancassurance Intermediary record Profit Before Tax of Shs 803.9 million.

Nonetheless, the Co-operative Bank of South Sudan posted a monetary loss of Kshs 421.7Million in FY2021 attributable to hyperinflation accounting due to currency 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 percent share and the former holding 49 percent.