Co-operative Bank has reported an Sh15.45 billion pre-tax profit for the third quarter of 2019 compared to Sh14.64 billion recorded in third quarter of 2018.
This reflects a six percent growth compared to Ksh14.64 billion recorded in the same period in 2018.
In net profits after tax, Co-op recorded Ksh10.9 billion compared to Ksh10.3 billion in the previous year.
The total operating income grew by 9 percent from Sh32.3 billion to Sh35.2 billion. Total non-interest income increased by 33 percent from Sh10.6 billion to Sh14.1 billion. Interest income from government securities increased by 18 percent from Sh6.9 billion to Sh8.2 billion.
Co-operative Bank of Kenya building
Total operating expenses grew by 11 percent from Sh17.8 billion to Sh17.8 billion on account of higher loan loss provision. Assets grew by Sh36.6 billion (9 percent) to Sh440.8 billion compared to Sh404.2 billion in the same period last year.
Net loans and advances book grew by Sh14.7 billion (6 percent) from Sh254.2 to Sh268.9 billion. Investment in Government securities grew by Sh11.4 billion (13.7 percent) to Sh94.6 billion compared to Sh83.2 billion in the first three quarters of 2018.
Key focus on digital banking, with the all-telco Mco-op CaShMobile Wallet continuing to play a pivotal role in the growth of non-funded income with over 4.7 million customers registered and loans worth over Sh27.6 billion disbursed as at the close of quarter three 2019.
Over 56,800 customers have taken up the rolled out MSME packages that we launched in 2018 and 4000 have been trained on business management and planning.
We have earmarked Sh15.2 billion for MSME lending and to date, we have disbursed Sh5.4 billion under the program. Retail banking services through Sacco FOSAs enabled us to provide wholesale financial services to over 464 FOSA outlets and issue over 1 million Sacco-Link cards.
Co-op bank customers lining up on ATM Machine
Co-op Consultancy & Insurance Agency contributed Sh511.1 million as of 30th September 2019. And Co-op Trust Investment Services has aggressively grown the funds under management to almost KSh100 billion. Co-op Bank Foundation has also provided Scholarships to gifted but needy students from all regions of Kenya.
The sponsorship includes; fully-paid secondary education, full fees for University education, Internships and career openings for beneficiaries. The foundation is fully-funded by the bank and has so far supported 7,032 students since the inception of the program.
The Group has also received several accolades in Q3 including EMEA Awards (African Banking Awards) 2019, the Bank was named Best Bank in Kenya; and 2019 East African Financial Reporting (FiRe) Awards, the bank was named Overall Winner in the Environmental Sustainability Reporting category.
Co-operative Bank of South Sudan that is a Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51 percent and GOSS 49 percent) made a Profit before tax of Sh174.7 million in Q3 2019.