Coop after-tax profit rises 18pc to Sh9.1bn

March 19, 2014
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Profit before tax stood at Sh10.87 billion in the year under review from Sh9.98 billion recorded for the same period in 2012/FILE
Profit before tax stood at Sh10.87 billion in the year under review from Sh9.98 billion recorded for the same period in 2012/FILE
NAIROBI, Kenya, Mar 19 – Cooperative Bank Group has reported an 18 percent increase in profit after tax for the year ended December 31, 2013 to Sh9.1 billion from Sh7.7 billion recorded in 2012.

Profit before tax stood at Sh10.87 billion in the year under review from Sh9.98 billion recorded for the same period in 2012.

Net loans increased by 15 percent in 2013 to Sh137.1 billion from Sh119.1 billion recorded in 2012 while total customer deposits increased to Sh180.9 billion compared to Sh163.1 billion in 2012, representing an 11 percent growth.

Investment in government securities increased by 18 percent from Sh33.4 billion to Sh39.3 billion with the bank’s total assets standing at Sh231.2 billion posting a 15 percent growth from Sh200.9 billion registered the same period in 2012.

Releasing the results in Nairobi on Wednesday, the bank’s Managing Director Gideon Muriuki says with the significant investments made over the years including a new core banking system, critical presence in most counties under the devolved governance structure and new operations in South Sudan, the growth momentum will be sustained with strong performance in the years to come.

The bank opened 20 new branches in 2013, making 134 branches in their network.

The bank also opened a new subsidiary in South Sudan in a joint venture with the South Sudan government.

The Board of Directors has recommended a dividend payment of 50 cents per every ordinary share held and a bonus share issue of one new ordinary share for every six ordinary shares held.

Shareholders’ funds increased by 23 percent in 2013 to Sh36.8 billion from Sh29.8 billion in 2012 as net interest income grew by 19 percent to Sh18.6 billion compared to Sh15.7 billion recorded in 2012.

Fees and commissions on loans and advances increased to Sh1.9 billion in 2013 compared to Sh1.5 billion in 2012, a 33 percent growth.

Customer accounts increased by 28 percent to over 4.1 million as banks plans to focus on rolling out a mobile wallet solution to increase customer penetration with a clientele base of over 1.3 million customers on mobile banking.

Corporate and institutional banking services contributed to their performance with forex income contributing Sh1.5 billion.

“We will continue to develop innovative and sustainable ways to optimise operational efficiency while providing unrivalled service. We are set to launch our enhanced mobile and Internet banking solutions by Q2 2014,” he said.

The bank plans to open branches in Uganda and Ethiopia in two years.

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