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The growth was buoyed by Non-interest Revenue which grew 33.1 percent to Sh17.2 Billion spurred by the 34.7 percent rise in fees and commissions to Sh12.8 billion/FILE

Kenya

CO-OP posts Sh14.3bn in profit as its intended acquisition of Jamii Bora takes shape

NAIROBI, Kenya, Mar 19 – Co-operative Bank of Kenya has reported a 12.6 percent year on year growth in its net profits to Sh14.3 billion, ahead of its intended acquisition of Kenya’s second smallest bank, Jamii Bora.

The growth was buoyed by Non-interest Revenue which grew 33.1 percent to Sh17.2 Billion spurred by the 34.7 percent rise in fees and commissions to Sh12.8 billion. This is even as the bank continues leveraging on its digital platforms to sustain growth in 2019.

Analysts at Genghis Capital anticipate non-interest revenue contribution to remain robust in in FY 2020 but should taper off slightly with recovery in NII, following the repeal of interest rate caps.

Total operating expenses before provisions grew 5.9 percent on account of an 8.1 percent increase in staff costs to Sh12.4 billion, while other operating expenses grew 3.9 percent to Sh12.9 billion.

Provisions rose 37.9 percent to Sh2.5 billion, while the balance sheet grew 10.5 percent primarily driven by investment in government securities, with the loan book expanding 8.7 percent year on year to Sh66.7Bn.

A final dividend of Sh1.00 was declared, which represents a dividend yield of 7.9 percent, with book closure on 23 April 2020.

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