Co-operative Bank group managing director Gideon Muriuki. FILE PHOTO | NMG
Co-operative Bank’s net profit for the first six months of 2019
has grown 4.6 per cent to Sh7.5 billion, majorly supported by growth in
non-interest income.
Total non-interest income, mainly
from fees and commissions on loans and advances, increased by 25 per
cent from Sh7 billion to Sh8.8 billion while interest income grew
marginally to Sh20.45 billion from Sh20.2 billion.
Group
Managing Director Gideon Muriuki said prudent cost management strategy
and revenue diversification helped to deliver the growth in
profitability.
“The group has continued with a strategy
for continued deepening and dominance in our domain market segment
while reviewing opportunities to grow alternative revenues from other
services like bancassurance, and leasing business.,” said Mr Muriuki.
The strong growth in non-funded income helped to grow the top line despite the sluggish growth in total interest income.
Its
all-telco Mco-op Cash mobile wallet was a key driver in growing
non-funded income by disbursing loans worth Sh14.4 billion as at the
close of half-year under review. The wallet has more than 4.6 million
registered customers.
Its South Sudan joint venture in which it owns 49 per cent stake
made a before-tax profit of Sh93 million, which was a 19 per cent drop
compared to Sh115 million posted in the half-year of 2018.
The
results helped Coop to remain the third most profitable lender after
Equity and KCB Group which posted Sh11.92 billion and Sh12.7 billion net
profit respectively during the period.
NIC Bank, which
is working on a merger with Commercial Bank of Africa, with the hope of
outpacing Coop on bottom-line, saw a 4.2 per cent drop in profit to
Sh1.9 billion.
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