Wednesday, August 7, 2013

Coop Bank profit up by 17pc

Co-operative Bank House along Nairobi’s Haile Selassie Avenue in Nairobi. FILE

Co-operative Bank House along Nairobi’s Haile Selassie Avenue in Nairobi. FILE 

By MWANIKI WAHOME [email protected]

Co-operative Bank has posted a 17 per cent growth in after-tax profit.

The bank earned Sh4.7 billion in its half-year results compared to Sh4 billion in the same period last year.

The Bank’s managing director Mr Gideon Muriuki said the bank defied low demand for loans and advances due to sustained growth in commissions and transaction-based incomes to record growth in the period under review.

“The growth was achieved despite the low demand for loans and advances due to sustained growth in commissions and transaction based incomes,” Mr Muruiki said in a signed statement about the bank’s financial performance.

The bank’s growth was aided by the partnership with CIC-insurance to offer bancassurance - selling of insurance through the bank - in its branches, while 425 Sacco Fosa outlets continued to grow with 593,000 new Sacco-link cards issued in the period.

Total customer deposits increased by Sh27.1 billion to Sh172.8 billion compared to Sh145.7 billion in June 2012.

The number of customers accounts crossed the 3.5 million mark.

“We now have 3.5 million account holders realised through continued concerted effort by all staff to bring funded accounts in the bank. With cross selling initiatives, we are increasing our wallet size by offering other products and services to our customers,” the MD said.

Loans increased by 11 per cent to Sh124.9 billion from Sh112.6 billion in the same period last year.

The bank’s assets reached Sh225.3 billion from Sh177.7 billion in the same period last year, placing it in third position in the country in terms of assets.

The net interest income increased by 19 per cent to Sh8.86 billion compared to Sh7.44 billion in the same period last year.

The non-funded income increased by 11 per cent to Sh4.5 billion in the period under review compared to Sh4.04 billion earned last year. The rise is attributed to due to fees and commissions.

The total operating costs increased by 15.5 per cent as it opened new branches across the country, while redeploying their staff to maximise on their personnel.

advertisement