Co-operative Bank Group has posted a 12.6 per cent growth in net profit for the year ended December 31 attributed to strong growth in non-interest income.
Its total non-interest income, mainly from fees and commissions on loans and advances, increased by 33 percent from KSh12.8 billion to KSh17.3 billion.
Gideon Muriuki, the chief executive said it has continued to leverage on successful penetration banking services in the country while reviewing opportunities to grow alternative revenue streams.
“The group has continued with a strategy for continued deepening and dominance in our domain market segment leveraging on our successful penetration of the micro, medium and small enterprises (MSMEs) and the Saccos, while reviewing opportunities to grow alternative income streams,” said Mr Muriuki.
The lender’s gross profits rose to KSh20.7 billion up from KSh18.2 billion in the previous financial year as it deepened the financial inclusion model rooted in over 15 million members of the cooperative movement in the country.
Its total operating income grew 10.9 percent to Sh48.5 billion up from KSh43.7 billion in 2018 attributed to growth in total interest income that rose to KSh43.6 billion and growth in interest income from government securities that rose 16 per cent to KSh11.4 billion.
Total asset value grew by 10.5 per cent to KSh457 billion up from KSh413.4 billion last financial year.
Net loan advances rose by 8.7 per cent to KSh332.8 billion from KSh306.1 billion in 2018.
Muriuki expects the acquisition of Jamii Bora Bank to support its future growth.
“The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offering to the enhanced customer base, and create a niche bank to offer specialised credit offerings that include MSME banking, microfinance, youth and women banking, asset finance and leasing,” said Mr Muriuki.
The board has recommended for approval a dividend payout of KSh1 per ordinary share.