Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Coop registers profit growth

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

A statement from the bank released on Wednesday said profits grew to Sh2.59 billion compared to Sh1.73 billion recorded during the same period in 2007.

Managing Director Gideon Muriuki credited the results to the growth of interest income, which went up from Sh3.97 billion to Sh5.09 billion as well as an increase in loans advanced to customers which increased by 27 percent.

“The impressive performance by the bank during the nine-month period is a clear indicator that the bank is on course to hit the Sh3.4 billion target for the full year,” Mr Muriuki said in a statement.

The bank’s income also went up from Sh2.62 to Sh3.33 billion mainly due to an increase in non-funded income streams such as foreign exchange, fees and commissions on loans and advances.

Customer deposits also rose to Sh64.7 billion from Sh54 billion while the total assets increased to Sh78.4 billion.

The performance was also bolstered by the bank’s focus on enhanced service delivery strategy with better efficiency and key investments in Information Communications Technology.

Mr Muriuki also said the impressive performance was attributed to an increase in the bank’s branch network following the opening of 10 outlets during the period under review, which helped to increase the retail customer base.

“The bank continued to institute strong liquidity management measures leveraging on refurbishing the branch network across the country and opening new branches,” he said.

Advertisement. Scroll to continue reading.

Mr Muriuki restated that performance in the period under review was in line with the bank’s strategic turnaround and said that they projected to open 30 additional branches by the end of 2009.

The bank also announced that the final tally of the just concluded Initial Public Offering was over Sh5.4 billion indicating a subscription of 81 percent against a set minimum success rate of 30 percent.

With a projected profit before tax of Sh3.4 billion, the bank’s capital base will rise to Sh14.2 billion placing it among the highest capitalised banks in the region, according to Mr Muriuki.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...