Cooperative Bank Group has posted a 12.7 per cent growth in its net profit for the first three months of the year to Sh3.6 billion, thanks to Savings and Credit Cooperative Society movement activities.
The company records shows most Saccos paid dividends to members during the 2020 quarter ended March 31.
The fourth-largest bank in Kenya by asset base said the growth comes from its strong digital channels and a 12.5 per cent growth in operating income catapulted by activities of vibrant Sacco.
The bank has successfully moved almost 90 per cent of all customer transactions to alternative delivery channels and expanded 24-hour contact centre, mobile banking, 584 ATMs, internet, and over 16,700 banking agents through its multi-channel strategy.
The lender’s MCo-op Cash Mobile Wallet played a pivotal role in the growth of non-funded income with 5.6 Million customers registered and loans worth over Sh16 billion disbursed during the quarter.
The bank’s gross profit stood at Sh5.1 billion with operating income rising to Sh12.5 billion compared to Sh11.1 billion in the corresponding quarter last year.
Total non-interest income increased by 19 per cent to Sh5 billion compared to Sh4.2 billion.
Coop Bank Group managing director Gideon Muriuki said the operating expense grew 20.6 per cent to Sh7.3 billion compared to Sh6 billion on account of higher loan provision and staff expenses.
‘’The Group notes the strong performance in the first quarter of this year, and continues to pay close attention to the enormous challenge posed by Covid-19 with a view to sustaining full and uninterrupted business operations in the days ahead,’’ said Mr. Muriuki.
He said that the bank continues to serve its members despite the challenges posed by the Covid-19 pandemic.
”In this regard, we 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,’’ Muriuki said.
The Group acquired 100 per cent of Jamii Bora Bank Ltd whose total assets sit at Sh12.5 billion in March.
The Bank Group’s total assets grew by 10.5 per cent to Sh470.4 billion in the quarter under review compared to Sh425.7 billion the same period last year.