Cooperative Bank Group recorded a growth of 12.6 per cent in profit after tax for the full year ending December 31, 2019. The bank registered a profit after tax figure of Sh14.3 billion in the year, up from Sh12.7 billion in 2018.
The lender attributed the growth to penetration of the retail and consumer banking, micro, medium and small enterprises and the co-operative movement saw its total operating income grow 10.9 per cent, from Sh43.68 billion to Sh48.46 billion.
The lender’s interest income from loans and advances decreased by 3.5 per cent from Sh32.95 billion in 2018 to Sh31.78 billion last year.
Interest expense also noted a slight increase, growing from Sh12.24 billion to Sh12.34 billion. The bank, which is in negotiations with Jamii Bora Bank to acquire 100 per cent shareholding, registered a total assets growth of Sh43.6 billion – from Sh413.4 billion recorded at the close of the year 2018 to Sh457billion.
Acquisition of Jamii Bora Bank, which has over 350,000 customers in 17 branches and an asset base of Sh12.5 billion, will spread Cooperative Bank’s tentacles even further.
“The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offering to the enhanced customer base,” said its Group Chief Executive Gideon Muriuki.
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