Top tier lender Co-operative Bank Group has posted a net profit of Sh10.3 billion in the third quarter ending September as customer numbers increase.
This is an improvement from Sh9.54 billion profit posted in a similar period last year.
The bank recorded total interest income from Sh29.8 bilion to Sh30.8 billion, with interest from government securities netting a 13.5 per cent increase from Sh6.12 billion to Sh6.9 billion.
Co-op says their multi-channel strategy has accounted for nearly 90 per cent of customer transactions through mobile, agency and internet banking solutions.
“Key focus on digital banking, with the all-telco Mco-op cash mobile wallet continues to play a pivotal role in the growth of non-funded income with over 3.9 million customers registered,” said group CEO and MD Gideon Muriuki in a statement.
The bank has over 11,000 Co-op Kwa Jirani agents to support non-branch services.
He said their strategy to offer retail banking services through Sacco front office savings accounts also spurred opening of accounts through Saccos, and provision of wholesale financial services to over 464 Fosa outlets, and issue over one million Sacco-linked cards.
During the period under review, net loans and advances book declined marginally to Sh254.21 billion from Sh259.39 billion in the same period last year.
The bank posted a 22 per cent growth in investment in government securities to Sh83.25 billion from Sh68.09 billion in 2017. Total deposits grew by three per cent to Sh297.6 Billion from Sh290.1 billion.
Total non-performing loans and advances grew to Sh28.6 billion from Sh16.03 billion last year according to financial statements.
Total insider loans, advances and other facilities grew from Sh9.3 billion to Sh10.4 billion in the period under review.
Other lenders that have announced their Q3 results are Kenya Commercial Bank, with a 19.6 per cent rise in profits to Sh18 billion, and Equity Bank posting Sh15.8 billion in profit in the period.