Coop latest to post profit

August 26, 2008

, NAIROBI, August 26 – The Cooperative Bank of Kenya has announced a 50 percent increase in pre-tax profit for the six months ended June 30.

A statement from the bank released Tuesday said their profit grew to Sh1.65 billion from the Sh1.1 billion recorded during the same period in 2007.

Managing Director Gideon Muriuki credited the results to the growth of the interest income, which went up from Sh2.5 billion to Sh3.3 billion as well as the growth in loans advanced to customers which increased by 45 percent to Sh43.4 billion.

The commission income also went up from Sh1.68 to Sh2.2 billion mainly due to an increase in non-funded income streams such as foreign exchange income, fees and commissions on loans and advances.

Customer deposits also rose to Sh59.1 billion from Sh50.8 billion while the total assets increased to Sh72.1 billion.

The bank’s performance was also bolstered by an increase in their branch network following the opening of seven outlets during the period under review, which helped to increase their retail customer base.

“The bank is set to open 20 more branches during the financial year,” he added.

Muriuki restated that their performance in the period under review was in line with the bank’s strategic turnaround over the last seven years and he has expressed confidence that it will be further enhanced by the Sh10 billion equity injection from the Initial Public Offering (IPO) slated for October.

The additional capital is expected to finance further growth and expansion.

The IPO, which is billed to be the second largest in the country, is already underway with the issue’s key consultants having been identified.

It is expected to be launched by October 20 once the statutory approvals have been received from the Capital Market Authority (CMA).

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