Restructuring lifts Co-op Bank to Sh15.2bn Q3 profit
Continued focus on cost cutting has seen the Cooperative Bank post 23 percent growth profit in the nine months to September.
During the period under review the bank posted a gross profit of Sh15.2 billion compared to Sh12 billion a year earlier.
During the period under review the bank issued Sh227 billion in loans which lead to an interest income of Sh32.3 billion.
Co-op Bank Group MD Gideon Muriuki said the bank would continue focusing on digital banking to lower its costs.
Currently the bank processes 87 percent of its transactions outside its branches.
The Bank has since 2014 been implementing a restructuring strategy dubbed ‘Soaring Eagle’ that focused on innovation, staff efficiency and cutting down on costs.
This has seen the bank’s cost income ration drop to 47 percent during the period under review.
Mr Muriuki expects the reforms to accelerate the bank’s profitability into the future.
“With most of the processes digitized, our staff has more time to serve the 6.1 million customers,” Mr Muriuki said.
The bank projects that its full year gross profit will be at least 22 percent higher than in 2015.
Even as the banking sector undergoes a round of layoffs, Co-op Bank has said it will not be sacking any employees in the foreseeable future.
The bank has in the last two years shed 400 jobs, with Mr Muriuki adding that it now had an optimal staff number of 3,600 employees.
He said while that while he understands the current changes in the banking industry, Co-op remains positioned to take advantage of emerging opportunities.
“We are not doing any retrenchment, we are ok. The natural attrition has adequately taken care of that,” he said.
The bank also reported strong growth in South Sudan which contributed a Sh25 million profit to the bank’s overall results.
For Citizen TV updates
Join @citizentvke Telegram channel
Video Of The Day: KEMRI scientists examine safety of anti-malarial drugs in first trimester of pregnancy