- The bank s attributed the growth to its strong digital channels.
- Coop Bank Group’s total assets grew by 10.5 per cent to Sh470.4 billion in the quarter under review compared to Sh425.7 billion the same period last year.
Cooperative Bank Group has posted a 12.7 per cent growth in its net profit for the first three months of the year to Sh3.6 billion, similar to the same period last year.
The fourth-largest bank in Kenya by asset base attributed the growth to its strong digital channels and a 12.5 per cent growth in operating income catapulted by activities of vibrant Sacco movement in the country.
Most Saccos paid dividends to members during the quarter under review.
The bank has successfully moved almost 90 per cent of all customer transactions to alternative delivery channels and expanded 24-hour contact centre, mobile banking, 584 ATMs, internet, and over 16,700 banking agents through its multi-channel strategy.
The lender’s MCo-op Cash Mobile Wallet played a pivotal role in the growth of non-funded income with 5.6 Million customers registered and loans worth over Sh16 billion disbursed during the quarter.
The Group’s gross profit stood at Sh5.1 billion with operating income rising to Sh12.5 billion compared to Sh11.1 billion in the corresponding quarter last year.
Total non-interest income increased by 19 per cent to Sh5 billion compared to Sh4.2 billion.
The lender’s operating expense, however, grew 20.6 per cent to Sh7.3 billion compared to Sh6 billion on account of higher loan provision and staff expenses.
‘’The Group notes the strong performance in the first quarter of this year, and continues to pay close attention to the enormous challenge posed by Covid-19 with a view to sustaining full and uninterrupted business operations in the days ahead,’’ Coop Bank Group managing director Gideon Muriuki said.
He added that the group has noted the historically unique operating environment occasioned by the pandemic, which has brought about unprecedented economic and social disruption throughout the world.
''In this regard, we continue to leverage our digital channels while ensuring that all branch outlets remain open to offer service, with due regard to the health and safety of both customers and bank teams,’’ Muriuki said.
In March, the Central Bank of Kenya approved the Group’s plan to acquire 100 per cent of Jamii Bora Bank Ltd whose total assets sit at Sh12.5 billion.
This could see Coop Bank close its asset gap with third-placed NCBA, which on Wednesday reported asset growth to Sh509.6 billion in a quarter, ended March 31, 2020.
Coop Bank Group’s total assets grew by 10.5 per cent to Sh470.4 billion in the quarter under review compared to Sh425.7 billion the same period last year.
KCB Group Plc on Wednesday reported Sh6.3 billion in profit after tax in the first quarter of 2020, a period that ended in March, an eight per cent increase from the Sh5.8 billion that was posted the same period in 2019.
National Bank of Kenya (NBK) which has since been acquired by KCB Group on the other hand posted Sh155 million in profit after tax for the first quarter of 2020 ending March, representing a massive 134 per cent increase compared to a similar period last year.
The bank attributed the performance to growth in the loan book and cost management initiatives.
“We have made significant gains in turning around the business. Our recovery momentum has however been slowed down by the disruption of global economies by the COVID-19 pandemic, but we are continually innovating to mitigate its impact on the business” MD Paul Russo said.
NCBA had earlier in the day reported a 20 per cent growth in net profit to Sh1.63 billion.