Co-op Bank made Sh20.7 Billion profit in 2019 – Report

The report shows a rise in profit earned by 14 percent

The Co-operative Bank of Kenya has recorded a rise in annual profits for the year 2019
The Co-operative Bank of Kenya has recorded a rise in annual profits for the year 2019 [Photo/ Courtesy]

In Brief

– The bank has initiated talks likely to lead in a merger with Jamii Bora Bank Ltd.

– The fiscal report was released by CEO Gideon Muriuki.

The Co-operative Bank has released its financial report for the full year 2019, indicating that the financial body realized a profit of Sh20.7 Billion being 14 percent rise based on the Sh18.2 Billion realized in 2018.

The report further indicates that the net profit after tax amounted to Sh14.3 billion compared to Sh12.7 Billion made in the previous year. The report was made public by the Chief Executive Officer Dr. Gideon Muriuki.

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At the same time, the report revealed that the bank’s total operating income shot up by 10.9 percent from Sh43.68 Billion in 2018 to Sh48.46 last year. Cash deposits by customers grew by 8.7 percent.

On loan grants, the total amount lend to debtors rose by Sh21.31 Billion to hit Sh266.71 Billion. With a raised number of customers in the new MCop-op Cash Mobile Wallet, the institution transferred funds amounting to Sh43.1 Billion in loans to at least 4.8 million customers.

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The bank also upscaled its investments to Sh117.80 Billion way from Sh80.27 in 2018. This marked a 46.8 percent rise in investments.

In the report, the bank set aside Sh15.2 Billion to loan to Small and Medium Enterprises (SMEs), amounts that were taken up by up to 70,000 customers during the year.

Additionally, the bank has initiated talks with Jamii Bora Bank Limited which, if concluded successfully, could see the Co-operative Bank of Kenya Limited acquire full ownership of the Jamii bank, which has an asset base of Sh12.5 Billion.

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The bank is in active operation of four subsidiaries among them Kingdom Securities Ltd, Co-optrust Investment Services Limited, Co-operative Bank of South Sudan, and Co-operative Consultancy Services (K) Ltd. It also prides itself in the ownership of a 24.8 percent stake in the CIC Insurance Group.

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