Gideon Muriuki, the Co-operative Bank of Kenya group managing director, during an investor briefing on March 19, 2014 in Nairobi. The bank reported a net profit of Sh9.1 billion in 2013 compared to Sh7.7 billion it made in 2012. Photo/William Oeri
What you need to know:
The bank’s full year after-tax profit stood at Sh9.1 billion in 2013 compared to Sh7.7 billion a year earlier as net interest income grew by a fifth to Sh18.6 billion.
Co-operative Bank’s net profit grew 18 per cent last year helped by increased lending and growth in transaction-based income.
The bank’s full year after-tax profit stood at Sh9.1 billion in 2013 compared to Sh7.7 billion a year earlier as net interest income grew by a fifth to Sh18.6 billion.
Co-op Bank benefitted from an increase in its transaction-based income as its customer base rose to 4.1 million from 3.2 million account holders.
This raised its earnings from forex trading, ledger and ATM fees to Sh9.3 billion from Sh8.2 billion, representing a 13 per cent growth.
Co-op chief executive Gideon Muriuki said the bank was aided by cross selling initiatives that helped it offer more services to its customers and co-operative societies to further boost fees and commissions.
“During the year, the bank changed its core banking platform to Bank Fusion Universal Banking-BFUB among other key systems which was aimed at positioning the bank for future growth,” Mr Muriuki said.
The bank’s loan book grew by Sh18 billion to Sh137.1 billion in 2013 from Sh119.1 billion supported by diversified product lines and pricing mechanism.
“We are set to launch our enhanced mobile and Internet banking solutions by Q2 2014,” said Mr Muriuki.
The bank opened 20 additional branches in the period under review bringing its total network to 134 and has 7,099 agents.
Co-op started operations in South Sudan in September last year with a single branch in the capital Juba – which made a loss of Sh275 million.
