Co-op Bank Group has posted a Ksh 15.3 Billion pre-tax profit for the second quarter of 2022.
This translates to a 45% rise in profit, the highest growth reported by the Tier 1 banks in Kenya, and compares to Ksh 10.5Billion recorded ina similar period last year.
This represents a strong Profit after Tax of Kshs. 11.5 Billion compared to Kshs. 7.4 Billion reported in 2021.
The Group’s subsidiaries, the Co-op Consultancy and Bancassurance Intermediary Ltd posted a Profit before Tax of Kshs 593.3 Million in the second quarter of 2022, riding on strong penetration of Bancassurance business.
Kingdom Bank Limited, a niche MSME Bank, contributed a Profit before Tax of Kshs. 405.9 Million in the second quarter of 2022 compared Kshs. 275 Million reported last year representing a 48% Growth year on year.
Meanwhile, Co-operative Bank of South Sudan, a unique joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%), returned a profit of Kshs 55.5 Million in the quarter compared to a loss of Kshs 290.1 million in a similar period a year ago.
In a statement, Co-op Bank Group Managing Director and CEO Dr. Gideon Muriuki said the strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.
During the period, total Assets grew to Kshs. 603.9 Billion, a 5.4% growth from Kshs 573 Billion in the same period last year. · Net loans and advances also grew to Kshs. 330 Billion, a 9.6% growth from Kshs.301.2 Billion.
Meanwhile, total operating income grew by 17.8% from Kshs 29.2 Billion to Kshs 34.4 Billion.
The Group lauded the excellent gains from its various initiatives with a Cost to Income ratio of 46% in Quarter 2 of 2022 from 59% in 2014 when it began the Growth and Efficiency journey.
” Credit Management remains a key focus area as we continue to execute our Credit Quality and Growth strategies that have registered progressive improvement in loan book quality,”Dr. Muriuki stated.
The Group prudentially provided Kshs. 3.3 Billion compared to Kshs 4.2 billion provided in 2021 indicating improving quality of our asset book as businesses and households continue to recover from the impact of Covid-19 pandemic.
“The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors. This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint, 9 Million customers and the unique synergies in the over 15 million-member co-operative movement that is the largest in Africa,” Dr. Muriuki assured.