NAIROBI, Kenya, May 18 – The Co-operative Bank Group has posted a Sh3.44 billion net profit in the first quarter of 2016 representing an 8 percent growth rate.
The performance was attributed to growth in the loan book that supported a 25 percent rise in interest income from loans to stand at Sh8.3 billion compared to Sh6.7 billion recorded in the same period in 2015.
Net loans and advances grew by 16 percent to Sh213.7 billion compared to Sh184.1 billion in the same period last year while deposits hit Sh267.4 billion from Sh238 billion last year, a 12 percent increase.
Shareholders’ funds stood at Sh55.3billion, a growth of 17 percent compared to 2015 with total assets at 350.7 billion.
The group has six million account holders across all sectors with 144 branches, 8,765 Co-op Kwa Jirani Banking Agents and over 570 ATMs.
The group’s subsidiary, Co-operative Bank of South Sudan that is a joint venture partnership with the Government of South Sudan made a profit of Sh11.5million during the period under review, a turnaround from a Sh15 million loss made over the same period last year.
In 2014, the bank began implementing the ‘Soaring Eagle’ transformation project with a critical focus on cost optimization, improvement in operating efficiencies and innovative customer delivery platforms.
“As the bank continues to focus on the ongoing ‘Soaring Eagle’ Transformation project, leveraging on our over six million account-holders, innovative and diversified delivery platforms and improved efficiency, the group projects to grow significantly to greater heights in 2016 and beyond,” the management said.
The bank’s regional expansion strategy will involve similar Joint Venture models in other countries notably Rwanda, Uganda, Tanzania, DRC and Ethiopia in the next five years.