Co-operative Bank of Kenya has launched a new property outfit targeting a fresh income stream.
The Co-op Bank Property Hub will be run under its mortgage division and will be charged with property sales and mortgage origination.
Co-op Bank reported an 11.6 percent rise in net profit to Sh12.7 billion for the year ended December 2018 on higher interest income and a cut in loan loss provisions.
Co-operative Bank #ticker:COOP of Kenya has launched a new property outfit targeting a fresh income stream.
The Co-op Bank Property Hub will be run under its mortgage division and will be charged with property sales and mortgage origination.
“We are establishing the Property Hub under our mortgage practice essentially intended as a value-add to our mortgage clients who can benefit immensely from the bank’s deep client pool,” the lender told the Business Daily.
“We are offering support to our customers who have developments they need to sell, at the same time offering serious buyers easy access to buy good properties.”
The lender said the Property Hub will have physical premises in Nairobi to serve prospective buyers.
“All our 150 plus branches countrywide will make available information on available properties,” it said.
“Coop Bank’s deep customer pool plus excellent contacts with key institutions should act as a catalyst and boost our clients’ property sales. We have hired a team of property professionals to handle this business.”
“(The hub will make) organised site visits and bus tours to review available properties.”
Co-op Bank reported an 11.6 percent rise in net profit to Sh12.7 billion for the year ended December 2018 on higher interest income and a cut in loan loss provisions.
Banks have been trying to diversify income streams since the rate caps in 2016. In 2017, the tier one lender said it had received regulatory approval from the Central Bank of Kenya to embark on a joint venture with South Africa’s leasing company Super Group Ltd.
Through the partnership, Co-op said it was seeking to expand its asset base leveraging major infrastructure projects, increased government acquisitions of equipment through leasing, exploration and mining activities in oil and gas subsectors.
In January, the lender concluded a major deal to supply 125 police vehicles worth more than Sh890 million. The deal, the bank said, was phase one of a plan to provide about 412 trucks to the police worth Sh2.2 billion this fiscal year.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
