Connect with us
Loading...

Business News

Co-op Bank returns Sh11b in nine months : The Standard

Published

on


Coop Bank Managing Director Gideon Muriuki.

Co-operative Bank of Kenya (Co-op Bank) has reported net profit of Sh10.9 billion for the nine months to September.

The profit was driven by growth in non-funded income, cost control and a strong focus on small and medium enterprises.
This was a six per cent growth on the Sh10.3 billion recorded in a corresponding period last year.
The lender said yesterday its profits for the third quarter were a result of increased focus on mobile banking and other alternative channels that enabled it to tame costs associated with traditional banking while creating new revenue streams.

SEE ALSO :Co-operative Bank records Sh10.44b profit in half-year 2019

A key contributor to the growth was its digital platform, Mco-op Cash, through which it advanced Sh27.6 billion in loans to customers.
The bank’s loan book grew six per cent to Sh268.9 billion while total assets grew nine per cent to Sh440.8 billion. Customer deposits also grew by nine per cent to Sh322.5 billion.
“Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet, continued to play a pivotal role in the growth of non-funded income with over 4.7 million customers registered and loans worth over Sh27.6 billion disbursed as at the close of quarter three 2019,” said Co-op Bank Group Chief Executive Gideon Muriuki in a statement.

For More of This and Other Stories, Grab Your Copy of the Standard Newspaper.

“Through our multi-channel strategy, the bank has successfully moved 89 per cent of all customer transactions to alternative delivery channels that include mobile banking, an expanded 24-hour contact centre, 586 ATMs, internet banking and over 16,000 Co-op Kwa Jirani banking agents.”
The bank also said a move to heavily focus on SMEs has started to bear fruit. Co-op Bank last year started courting small and medium enterprises and has since then advanced Sh5.4 billion and targets to increase this to Sh15.2 billion.

SEE ALSO :Co-op profit rises to Sh7.5b on higher fees

It started advancing credit to the small enterprises at a time when much of the banking industry had chosen to starve SMEs owing to a cap on interest rates, considering them too risky.
Coop Bank has also been mentoring some of the SMEs in managing their businesses.
“Over 56,800 customers have taken up the MSME packages that we launched in 2018 and 4,000 have been trained on business management and planning. We have earmarked Sh15.2 billion for MSME lending and to date we have disbursed Sh5.4 billion under the programme,” said Mr Muriuki.
“We will continue to deliver good performance as we focus on growing the 8.7 million account-holder base.”
Co-operative Bank of South Sudan, a joint venture with the Government of South Sudan, made a profit before tax of Sh174.7 million in the third quarter.

SEE ALSO :Lake Basin Mall racks up Sh3.5 billion debt

Co-op Consultancy and Insurance Agency also contributed Sh511.1 million to the group’s income.


Do not miss out on the latest news. Join the Standard Digital Telegram channel HERE.

Co-operative BankCo-op BankMco-op Cash





Source link

Advertisement
Loading...
Loading...

Facebook

Loading...

Trending

Social Media Auto Publish Powered By : XYZScripts.com