Co-op posts 7.5 percent jump in Q3 profits
Co-op Bank posted a 7.5 percent jump in net profits to Kes18.3 billion in the third quarter this year on strong revenue growth from increased lending and higher interest rates.
Net loans and advances grew to Kes378.1 Billion, a 12.8 percent growth from Kes335.2 Billion in 2022 as the lender pivoted away from lending to the government towards the private sector.
This saw interest income from loans jump from Kes27.8 billion to Kes31.8 billion while interest form government securities grew marginally from Kes15.5 billion to Kes16.7 billion.
The lender’s unique exposure to the sacco sector and leveraging partnerships with small businesses using financial training to contain delinquency the bank has managed to grow its loan book substantially.
The Bank is leveraging external funds from development partners for onward lending which have increased by 56.5percent to Kes65.6 Billion from Kes41.9 Billion in 2022.
“Over 193,000 customers have taken up the MSME packages we rolled out in 2018, and 42,413 have been trained on business management skills. Year to date, we have disbursed Kes15.9 Billion to MSMEs through our Mobile E-Credit solution. MSMEs make up 15.5 percent of our total Loan Book,” Co-op Group Managing Director Dr. Gideon Muriuki said.
Co-op Bank Group assets grew to Kes661.3 Billion, a 6.3 percent growth in the same period last year while customer deposits grew to Kes432.8 Billion.
The Bank has grown the branch network to 193 (4 in South Sudan). Eight (8) new Branches (Nakuru Bahati Road, Kimana, Matuu, Thika Kwame Nkrumah, Greenwood Mall – Meru, Kenol Makuyu, Hindi – Lamu and Bamburi – Mombasa) opened in 2023, whereas 5 Branches (Kabarnet, Iten, Kasarani, Kamakis and Chwele) opened last year.
Co-op Banks’s focus on retail and corporate clients has seen it feted as the Overall Winner at the Kenya Bankers Association (KBA) 2023 Sustainable Finance Catalyst Awards for the fourth time in six years.
In addition to scooping the overall title, Co-op Bank also won in specific award categories that include being named as the Most Innovative Bank, Best in Financing Commercial Clients, Best in Promoting Gender Inclusivity, and the Best in Promoting Accessibility for People with Disabilities (PWD).
