CO-OP BANK ANNOUNCES 8% PROFIT GROWTH FOR FIRST THREE MONTHS IN 2016

Co-operative bank has seen its net profit for the three months of the year grow by 8%. The bank’s profits after tax stood at 3.44 billion for the three months to March 2016 compared to sh3.17 billion posted for a similar period a year earlier. The bank’s Chief Executive Gideon Muriuki attributed the performance to a cost-cutting drive dubbed ‘soaring eagle transformation’ initiated two years ago.

Co-op Bank CEO Gideon Muriuki
Co-op Bank CEO Gideon Muriuki

The bank’s loan book grew by 16 per cent to sh213.7 billion from sh184.1 billion in the same period this resulted in a 25 per cent rise in interest income to stand at sh8.3 billion compared to sh6.7 billion recorded in the same period in 2015.
Customer deposits grew by sh29.4 billion to sh267.4 billion from sh238 billion last year, a 12 per cent increase. The lender’s total non-interest income grew by 21 per cent from sh2.87 billion to sh3.46 billion.

According Mr. Muriuki the bank incurred a one-off cost of sh1.3 billion in laying off staff in 2014. He said the lender had successfully moved 85 per cent of its customer transactions to alternative delivery channels particularly mobile, ATMs, internet and agency banking fostering efficiency.