Co-operative Bank register KSh 10.9 billion profit in first nine months of 2019

- Co-operative Bank CEO Gideon Muriuki said the group's KSh 10.9 billion profit after tax was driven by its "soaring eagle" trans-formative agenda

- The lender's total operating income grew by 9% from KSh 32.3 billion to KSh 35.2 billion

- The bank however, faced a challenge in its lending to MSMEs as it only managed to loan out KSh 5.4 billion out of the total KSh 15.2 billion earmarked

Co-operative Bank has posted a 6% increase in after tax profit for the first nine months ending September 2019 to KSh 10.9 billion.

The lender which is the third largest by assets in the region, said the growth was driven by its "soaring eagle" trans-formative agenda that has re-tooled and equipped the business with added competitive advantage.

READ ALSO: Bankers reiterate Uhuru Kenyatta’s assurance that repeal of interest rates cap will benefit all Kenyans

Co-operative Bank CEO Gideon Muriuki said the bank's profits was driven by its “soaring eagle” agenda that has equipped the business with added competitive advantage. Photo: The Standard.
Source: UGC

READ ALSO: Huawei launches highly anticipated KSh 31k Huawei Y9s smartphone

The group’s total operating income grew by 9% from KSh 32.3 billion to KSh 35.2 billion while its total assets grew 9% to KSh 440.8 billion compared to Ksh 404.2 billion in the same period last year.

The bank said it sustained difficult economic times that was driven by the interest rate cap by rolling out different packages to micro, medium and small enterprises and Saccos.

Co-operative is banking on its innovative customer innovative like the Mco-op cash mobile wallet which continues to play a pivotal role in the growth of non-funded income. Photo: Co-op Bank.
Source: UGC

READ ALSO: 4 teachers arrested for hiding biology exam leakage in toilet

“The group has continued with a strategy for continued deepening and dominance in our domain market segment leveraging on our successful marketing to the micro, medium and small enterprises and the Saccos, while reviewing opportunities to grow alternative income streams from other services like Bancassurance, and Leasing business being done through Co-op Bank Fleet Africa Leasing Ltd, a strategic joint venture with Super Group of South Africa,” Muriuki said.

Muriuki said its subsidiary in South Sudan made a KSh 174.7 million profit before tax during the period under review.

Muriuki noted over 56,800 customers have taken up the rolled out MSME packages that we launched in 2018 and 4000 have been trained on business management and planning. Photo: Daily Nation.
Source: UGC

The lender is relying on its innovative customer innovative delivery platforms such as the Mco-op cash mobile wallet which continues to play a pivotal role in the growth of non-funded income.

In this, over 4.7 million customers registered on the platform with loans worth over KSh 27.6 billion disbursed during the period making it one of the fastest growing segments.

The bank however, faced a challenge in its lending to MSMEs as it only managed to loan out KSh 5.4 billion out of the total KSh 15.2 billion earmarked for the program, representing a 35% success rate.

Do you have an inspirational story you would like us to publish? Please reach us through [email protected] or WhatsApp: 0732482690. Contact Tuko.co.ke instantly.

Cate Waruguru vs Anne Waiguru I Tuko TV

Subscribe to watch new videos