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Co-op Bank Group Reports highest ever jump in profits

Coop Bank Building

The Cooperative Bank has reported a pre-tax profit of Ksh22.6 billion for the full year 2021, a 59% jump over the previous year. This represents a Ksh16.5 billion after tax profit compared to the Ksh10.8 billion reported in 2020.

The bank notes that this is its best performance and underscores its strategic focus on sustainable growth and transformation. 

The Coop Bank Group registered a sustained growth in total assets which grew to Ksh579.8 billion, a 8 per cent growth from Ksh536.9 billion in the preceding year.

The net loans and advances grew by 8 per cent to Ksh310.2 billion, from Ksh286.6 billion in the year 2020.

Investment in government securities grew to Ksh184.1 billion from Ksh161.9 billion in 2020. Customer deposits grew by 8 per cent to Ksh407.7 billion from Ksh378.6 billion in 2020. 

Borrowed funds from development partners stood at Ksh42.9 billion from Ksh46.0 billion in 2020. Shareholders’ funds grew to Ksh100.2 billion (10 per cent growth) from Ksh90.7 billion in 2020, enabling the firm to continue pitching for big ticket deals.Comprehensive Income

The total operating income grew by 12 per cent from Ksh53.8 billion to Ksh60.4 billion while total non-interest income grew by 11 per cent  from Ksh17.5 billion to Ksh19.4 billion. 

Net interest income grew by 13 per cent from Ksh36.3 billion to Ksh41.0 billion while total operating expenses improved by 3 per cent from Ksh39.4 billion to Ksh38.1 billion.

Coop Bank prudentially provided Ksh7.9 billion in loan loss provisions compared to Ksh8.1 billion provided in 2020 indicating improving quality of the bank’s asset book as businesses and households continue to recover from the impact of Covid-19 pandemic.

Subsidiaries

Co-op Consultancy & Bancassurance Intermediary posted a pre-tax profit of Ksh803.9 million as at 31st December 2021, riding on strong penetration of Bancassurance business.

Co-operative Bank of South Sudan that is a unique joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51 per cent and GOSS 49 per cent) returned a monetary loss of Ksh421.7 million in FY2021 attributable to hyperinflation accounting due to currency devaluation of the South Sudanese pound. 

Co-op Trust Investment Services contributed Ksh140.4 million in pre-tax profit in FY2021, with Funds under Management of Ksh189.2 billion compared to Ksh127.5 billion in December 2020.

Kingdom Bank Limited (former Jamii Bora Bank) has contributed a profit before tax of Ksh512.4 million in FY2021.

Dividend Payment

The Board of Directors has recommended subject to shareholders approval at the next AGM on 29th May 2022, a dividend payment of Ksh1 per share (Ksh5.9 billion payment).

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