Cooperative Bank profit before tax rises to Sh4.9b
Published Thu, May 24th 2018 at 10:20, Updated May 24th 2018 at 10:25 GMT +3
NAIROBI, KENYA; Cooperative Bank of Kenya has recorded 9 percent growth in its pre-tax profit in the first quarter of 2018.
The bank’s Profit before tax rose to Sh4.9 billion in the period under review compared to Sh4.5 billion recorded in 2017. The bank attributes the growth to its “Soaring Eagle” transformation project that it has been implementing since 2014 with a clear focus on improvement in operating efficiencies, sales force effectiveness and innovative customer delivery platforms.
Profit after tax was Sh3.4 billion compared to Sh3.2 Billion in the previous year.
“This is a very commendable performance as the operating environment gradually recovers from the significant headwinds that business had to contend with in year 2017,” said Gideon Muriuki, Group CEO
During the period under review, the bank’s total interest income improved by 9 percent from Sh9.5 billion to Sh10.4 billion on account of; Interest income from government securities increasing by 13.4 percent from Sh1.76 billion to Sh2 billion and Interest income from loans and advances increasing by 9 percent supported by a 3 percent growth in loans and advances and improved yield of loans of 13.4 percent.
Co-operative Bank of South Sudan that is a unique Joint Venture partnership with Government of South Sudan made a Profit before tax of Sh32.4 Million in Quarter 1 of 2018 compared to a loss of Sh34.7 Million same period last year.
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Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with over 3.7 Million customers registered.