Non-interest income: Co-op Bank net profit up 6pc to Sh7.5b
Non-interest income attributed to Co-operative Bank Group’s 5.6 per cent rise in net profit of Sh7.5 billion in the six months ended June 30.
Profit before tax during the same period increased to Sh10.44 billion compared to Sh9.98 billion recorded in the first half of 2018.
Group Chief Executive Officer, Gideon Muriuki said the rise in profitability was mainly from fees and commissions on loans and advances and foreign exchange trading.
Speaking during an investors briefing yesterday, Muriuki said the total non-interest income increased by 25 per cent from Sh7 billion to Sh8.8 billion and the interest income from government securities increased by 22 per cent from Sh4.5 billion to Sh5.5 billion.
He said the total operating income grew by five per cent from Sh21.8 billion to Sh23 billion, while the total operating expenses remained controlled, growing by five per cent from Sh11.97 billion to Sh12.6 billion as a result of prudent cost management strategy and enhanced efficiency.
Muriuki said the “Soaring Eagle” Transformation Agenda initiated four years ago has provided the bank with a competitive edge in ensuring sustained growth in market share across all market segments and counties.
“The agenda has progressively deepened our financial inclusion model rooted in the over 15 million-member co-operative movement, that is the face of Kenya,” he added.
The group’s financial results indicate that Co-op Consultancy and Insurance Agency contributed Sh353.3 million during the period under review, while Co-op Trust Investment Services grew the funds under management to almost Sh100 billion.
Muriuki said the group’s key focus is on digital banking, with the all-telco Mco-op Cash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with over 4.6 million customers registered and loans worth over Sh14.4 billion disbursed as at June 30.
He said the group will continue to review opportunities to grow alternative revenues from other services such as Bancassurance and Leasing business being done through Co-op Bank Fleet Africa Leasing Ltd, a strategic joint venture with Super Group of South Africa.
The bank said it has successfully moved 88 per cent of all customer transactions to alternative delivery channels that include mobile banking, an expanded 24-hour contact centre, 585 Automated Teller Machines (ATMs), internet and over 12,956 Co-op Kwa Jirani banking agents.