Co-op Bank Group has recorded a half-year profit of Ksh11.5 billion, up 55.4% from the Ksh7.4 billion reported during the same time in 2021.
The improved performance was attributed to an increase in comprehensive income as well as an increase in total assets. Compared to the same period the previous year, total assets climbed by 5.4% to Ksh603.9 billion, from Ksh573 billion. Net loans and advances made by the lender increased to Ksh330 billion, up 9.6% from Ksh301.2 billion.
Compared to 2021, investment in government securities increased slightly to Ksh183.2 billion from Ksh182 billion. The Co-op Bank Group’s non-interest income climbed by 29% to Ksh13.3 billion. As the co-op works with SMEs to ensure that the bank maintains borrowers, the lender has disbursed billions in small company loans, according to the Group CEO, Gideon Muriuki.
Co-op bank CEO Gideon Muriuki said that The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility. Banks are now lending to the private sector, and the first quarter of 2022 saw double-digit growth for the first time in nearly five years. The cooperative claims that while the lender is making loans to the private sector, they have made care to maintain the quality of their loan book.
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Co-op Consultancy and Bancassurance Intermediary Ltd., two additional companies, reported a gross profit of Ksh593.3 million, with Co-op Trust Investment Services accounting for Ksh85.7 million of those earnings. The Co-operative Bank of South Sudan, which is jointly operated by the South Sudanese government, reported a profit of Ksh55.5 million as opposed to a deficit of Ksh290.1 million during the same period last year.
The bank has effectively transitioned 94% of all customer transactions to alternative delivery channels, including an enlarged 24-hour contact centre, mobile banking, 558 ATMs, internet banking, and a nationwide network of Co-op Kwa Jirani agents, thanks to its digital channel strategy. The result provides shareholders of Coop Bank with a competitive return on equity of 24.2%. The half-year earnings of Co-op bank were Sh11.5 billion. The half-year earnings of Co-op bank were Ksh11.5 billion.
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