Top tier lender Co-operative Bank has posted a Sh3.6 billion profit in the first quarter 2019, compared to Sh3.4 billion in the same period last year, it has announced, ahead of the annual general meeting on Thursday.
The lender’s strategic transformative agenda, Soaring Eagle, has continued to push its performance posted steady growth of 4.4 per cent.
Among the developments is the moving of customer transactions to alternative delivery channels to reach customers at their convenience.
“The bank has successfully moved 88 per cent of all customer transactions to alternative delivery channels including self-service kiosks in 155 branches, an expanded 24-hour contact centre, mobile banking, 585 ATMs, internet and over 11,600 Co-op Kwa Jirani banking agents,” managing director Gideon Muriuki said in a statement.
The bank’s total non-interest income increased 19.1 per cent from Sh3.5 billion to Sh4.2 billion, with interest income from government securities going up 39.6 per cent from Sh2 billion to Sh2.8 billion.
The lender’s investment in government securities rose 38.6 per cent to Sh103.9 billion, from Sh75 billion in the same period last year.
The bank total assets grew seven per cent to Sh425.7 billion from Sh397.8 billion last year. Its focus is on growing the digital banking function, which is riding on their mobile wallet MCo-op cash.
The bank said this channel is continuing to play a pivotal role in the growth of non-funded income with over 4.3 Million customers using the service. The bank dispensed 1.2 million loans worth over Sh5.1 billion, some through the digital platform, in the period under review.
The lender’s foray into supporting the MSME sector has borne fruit, with more than 26,800 customers applying for Sh3.2 billion in loan facilities provided. It has also trained more than 1,600 business people in business management and planning.
The lender’s performance is below Equity Bank’s Sh5.9 billion profit announced last week, as the bank eyes the Ethiopian market to expand its market share.
