By James Anyanzwa
The Co-operative Bank Group has announced a 25.3 per cent growth in pre-tax profits for the three months period ending March 31.
The bank's profit before tax rose to Sh1.3 billion, up from Sh1.04 billion recorded in a similar period last year.
Mr Gideon Muriuki, the bank's Managing Director and Chief Executive attributed the impressive performance to new business lines, which continued to thrive in the first quarter of the year.
These, he said, included the bank's stockbrokerage services through the newly formed Kingdom Securities Limited mortgage product dubbed 'Good Homes', Points of Sale and the Coffee Marketing programme through the Kenya Co-operative Coffee Exporters.
Sustained growth
"The positive growth registered is a clear testimony that the bank has sustained the growth momentum achieved over the years, especially once the enhanced capital is used," Mr Muriuki said in a statement Wednesday.
He said the bank continued with its growth plans and was able to grow assets and all lines of incomes, thus ensuring sustained profitability.
According to the bank's unaudited financial statements released Wednesday, net interest income increased by 24.5 per cent to Sh1.95 billion, up from Sh1.56 billion, while non-funded income grew by 31.6 per cent to Sh1.3 billion, up from Sh989 million recorded in the same period of 2009.
The income comprises mainly fees and commissions from ATM's, personal and business banking, forex income and letters of credit.
Operating expenses rose to Sh1.95 billion, from Sh1.51 billion. The growth in expenses is attributed to the bank's ambitious business expansion initiatives. Total customer deposits surged 39 per cent to Sh100 billion, up from Sh71.2 billion, mainly supported by the increased client base of over 1.2 million account holders.
The loan portfolio increased by 17.2 per cent to Sh65 billion, up from Sh55.5 billion.
The bank's diversified product lines and a competitive pricing mechanism have sustained the increase.
Diversified products
Total shareholders funds increased by 16.6 per cent to Sh17.2 billion from Sh14.7 billion. Total assets jumped 35.6 per cent to Sh.121.7 billion, up from Sh89.7 billion posted in a similar period last year.
Muriuki said the bank would continue to grow and expand in line with its strategic plans and by embracing key relationships established with its clientele and the co-operative movement.
He said the Co-operative Bank of Southern Sudan is now being registered as a joint venture with the Government of Southern Sudan (GoSS).
He said Cooperative Bank of Kenya holds a 70 per cent controlling stake in the Sudan venture, and the balance of 30 per cent is held by the Goss on behalf of the Co-operative Movement of South Sudan. "Other preparations including premises are at an advanced stage," said Muriuki.
Source: The Standard | Online Edition
0 comments:
Post a Comment