The Co-operative Bank Group has posted a Ksh 5.1 Billion Profit before Tax for the first quarter of 2020. The performance is similar to the one recorded a year ago in first quarter of 2019, where profit after Tax was Kshs 3.6 Billion.
While announcing the results, the Group Managing Director Dr. Gideon Muriuki , in a statement said this is despite the historically unique operating environment occasioned by the Covid-19 pandemic which has brought about unprecedented economic and social disruption throughout the world.
Total operating income during the period grew by 12.5% from Ksh 11.1 billion to Ksh 12.5 billion. Net interest income also increased b 8.5% from Ksh 6.9 billion to Ksh 7.5 billion. Meanwhile, total operating expenses from b 20.6% from Ksh 6 billion o Ksh. 7.3 billion , attributed o higher loan loss provision and staff expenses.
The balance sheet during the period has meanwhile shown that customer deposits also grew b 6.9% from Ksh 317.8 billion o Ksh 339.6 billion. Shareholders’ funds have also recorded a 12.7% growth to Ksh 82 billion , from Ksh 72.8 billion in 2019. This has enabled Coop Bank to continue to pitch for big-ticket deals.
Meanwhile, Co-operative Bank of South Sudan, a unique Joint Venture (JV) partnership with Government of South Sudan has also made a Profit before tax of Kshs 29.7 Million in first quarter 2020. The Co-op Consultancy & Insurance Agency also contributed Ksh 250.5 million as at 31st March 2020.
The Group has further said it has put in place a comprehensive mitigation strategy intended to ensure full banking services continue being accessible to customers in a safe environment consistent with the Ministry of Health guidelines. It said it will also continue to leverage our digital channels while ensuring that all branch outlets remain open to offer service, with due regard to the health and safety of both customers and bank teams.
This even as the Group awaits the acquisition of 100% shareholding in Jamii Bora Bank Limited following the 11th March 2020 approval of progression of discussions by the Board of Directors of Cooperative Bank.
In joining hands with the Nation and the global community of goodwill in fighting the Covid 19 pandemic and supporting mitigation efforts with, among other measures, Cooperative Bank Group donated Ksh 100 Million cash donation to the COVID-19 Emergency Response Fund.
The Group says it notes the strong performance in the first quarter of this year, and continues to pay close attention to the enormous challenge posed by the pandemic with a view to sustaining full and uninterrupted business operations in the days ahead.