Good numbers: Co-op Bank Group Managing Director & CEO Dr. Gideon Muriuki together with Bank Chairman John Murugu and Vice Chairman Macloud Malonza go through Co-op Bank’s Annual Report during the bank’s 14th Annual General Meeting held virtually, Friday 27 May, 2022

Co-op Bank Group has posted a Profit Before Tax of Kshs. 7.78 Billion for the first quarter of 2022, a commendable 56% growth.

This is compared to Kshs. 4.98 Billion pre-tax profit recorded in the first quarter of 2021, and represents a strong Profit after Tax of Kshs. 5.8 Billion compared to Kshs. 3.5 Billion reported in 2021.

In a statement, The Group said the performance delivers a competitive Return on Equity of 23.8% to its shareholders and is in line with the bank’s strategic focus on sustainable growth, resilience, and agility.

The Bank’s total Assets grew to Kshs. 597.0 Billion, a +8% growth from Kshs 552.9 Billion in the same period last year, while Net loans and advances grew to Kshs. 324.5 Billion, a +9% growth from Kshs.298.2 Billion.

Total operating income grew by 17% from Kshs 14.4 Billion to Kshs 16.8 Billion while total non-interest income grew by 41.7% from Kshs 4.5 Billion to Kshs 6.4 Billion.

Meanwhile, the Bank’s Gross Non-Performing Loan (NPL) Book has reduced by 5% from last year, with its Non Performing Loan ratio improving to 13.3% against 15.2% in a similar period last year. This affirms the Bank’s Credit Quality and Growth strategies and will continue to improve to single digit pre-pandemic NPL levels.

“The Group prudentially provided Kshs. 1.5 Billion compared to Kshs 2.3 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 Bank said in a statement.

The Bank Group’s subsidiaries,  Co-op Consultancy and  Bancassurance Intermediary Ltd have also  posted a Profit Before Tax of Kshs 316.9 Million as at 31st March 2022, riding on strong penetration of Bancassurance business.

On it’s part, 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%) returned a profit of Kshs 43.9 Million in Q12022 compared to a loss of Kshs 89.1 million in Q12021.

Kingdom Bank Limited, which is a  niche MSME Bank, has contributed a Profit Before Tax of Kshs. 199.3 Million in Q12022 compared Kshs. 126.7 Million reported last year representing a 57% Growth year on year.

Using it’s digital channel strategy, the Bank reported successfully moving 94% of all customer transactions to alternative delivery channels, an expanded 24-hour contact centre, mobile banking, 541 ATMs, internet banking and over 27,000 Co-op Kwa Jirani agency banking terminals.

Meanhwhile, the bank noted that over 151,500 customers have taken up the MSME packages that it rolled out in 2018, and 23,363 have been trained on business management skills. Up to  Kshs. 4.3 Billion have been disbursed to MSMEs through the bank’s  Mobile E-Credit solution to date.

Group Managing Director and CEO Dr. Gideon Muriuki stated that riding on the unique synergies in the over 15 million-member co-operative movement that is the largest in Africa, the bank Group will continue to pursue strategic initiatives that focus on resilience and growth in the various sectors as the economy continues to recover.