The Co-operative Bank Group made Ksh.10.9 billion third-quarter profit, a 5.8 percent jump in earnings ending September attributed to increased issuance of digital loans which helped raise income derived from fees and commissions.
The growth was driven by total non-interest income which increased by 33% to Ksh 14.1 billion. Interest income from government securities increased by 18% to Ksh 8.2 billion.
“Key focus on digital banking, with the all-telco Mco-op Cash Mobile Wallet, continued to play a pivotal role in the growth of non-funded income with over 4.7 million customers registered and loans worth over Sh27.6 billion disbursed as at the close of quarter three 2019,” said Co-op Bank Group Chief Executive Gideon Muriuki in a statement.
“Through our multi-channel strategy, the bank has successfully moved 89 per cent of all customer transactions to alternative delivery channels that include mobile banking, an expanded 24-hour contact centre, 586 ATMs, internet banking and over 16,000 Co-op Kwa Jirani banking agents.”
During the period, its total operating expenses increased by 11% to Kshs. 17.8 billion on account higher loan loss provision. Net loans and advances grew 6 percent to Ksh 268.9 billion. Investment in Government securities rose 13.7% to Kshs. 94.6 billion.
Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit before tax of Kshs 174.7 Million in Q3 2019.
The lender expects to keep by the diversification- “Soaring Eagle” Transformation Agenda- to strengthen its dominance on retail banking and the cooperative movement.
“The group continues to leverage on the benefits of the transformation agenda which has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments,” Co-op Group Managing Director Gideon Muriuki said.
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