Cooperative Bank

Cooperative Bank Nine Months Pre-tax Profit Rise 10%

Co-operative Bank reported a 10% rise in pre-tax profits for the nine months period ending September 30. The bank recorded Ksh.2.85 billion up from Ksh.2.59 in the corresponding period in 2008. This was mainly driven by a 27% increase in net interest income from Sh3.9 billion to Sh4.9 billion.

During the period under review, net loans and advances increased by 24% from Ksh.48.7 billion to Ksh.60.5 billion. Non-funded income particularly fees and commissions constituted 40% of the bank’s revenue as total interest income increased from Ksh.5.1 billion to Ksh.6.5 billion.

Total customer deposits rose from Ksh.64.7 billion to Ksh.76.6 billion, representing an 18% growth. Total assets increased by 26% from Ksh.78.5 billion to Ksh.98.8 billion.

The bank’s operating expenses rose 16% to Ksh.5.37 billion from Ksh.4.6 billion in light of an extensive expansion program. 19 new branches have been opened this year, mainly through application of a leasing option for new outlets. The management find leasing of outlets to be cheaper and tax efficient.

Coop bank invested in an ICT switch, enabling Sacco members’ access to their money from any Co-op ATM Under the bank’s Sacco Link product. The bank projects to have 300,000 users by year end having issued over 140,000 cards.

During the year, the bank acquired Bob Mathews Stockbrokers and renamed it Kingdom Securities appointing all coop bank branches as its agents. The bank still plans to enter Southern Sudan with five branches and is currently negotiating a strategic partnership with the co-operative movement in Uganda and Rwanda. Recently, it launched a mortgage product, “Good Home”

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