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Co-op Bank posts Sh7.4bn net profit in first half 2016

Shareholders' funds hit Sh57.9 billion a growth of 23 per cent compared to same period last year/FILE

Shareholders’ funds hit Sh57.9 billion a growth of 23 per cent compared to same period last year/FILE

NAIROBI, Kenya, Aug 17 – Co-operative Bank Group has posted Sh7.4 billion net profit in their half year 2016, a 19 percent growth compared to Sh6.24 billion in the previous year.

The management attributes the performance to the Soaring Eagle’ Transformation Project that the bank has been implementing since 2014 with a critical focus on cost optimisation, improvement in operating efficiencies and innovative customer delivery platforms.

“Operational efficiencies resulting from this project have seen our Cost-to-Income Ratio improve from 58.8 per cent in December 2015 to 51.4 per cent in June 2016. The group’s sustained good performance is an affirmation of the bold ‘soaring eagle’ Transformation agenda, “said the Group’s Managing Director Gideon Muriuki.

Interest income in the period under review grew by 29 percent from Sh16.7 billion to Sh21.5 billion supported by an 11 percent growth in earning assets.

Total Non-Interest income grew by 15 per cent from Sh5.97 billion to Sh6.85 billion compared to the same period last year.

Total assets grew by Sh37.9 billion to Sh363 billion compared to Sh325.1 billion in the same period last year.

Net loans and advances book grew by Sh16.4 billion to Sh221.3 billion compared to Sh204.8 billion in the same period last year while deposits grew by Sh26.8 billion to Sh279.6 billion from Sh252.8 billion last year, an11 per cent increase.

Shareholders’ funds hit Sh57.9 billion a growth of 23 per cent compared to same period last year.

“The Co-operative Bank Group will on the back of the strong six million account-holder base, multichannel access, the basket of innovative financial solutions, and efficient delivery of services continue to increase operating efficiency and profitability,” Muriuki added.

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