[2008-08-27]  Co-op Bank records Sh1.7 billion profit
Co-operative Bank of Kenya has registered a 50 per cent growth in pre-tax profits for the half-year ending June 30.

The profits before tax climbed to Sh1.7 billion, up from Sh1.1 billion in a similar period last year.

"The impressive performance is testimony that the bank has successfully sustained the strategic business and operational restructuring," says Gideon Muriuki, the bank’s managing director.

According to the bank’s financial statements released on Tuesday, interest income jumped 30 per cent to Sh3.3 billion from Sh2.5 billion while commission incomes advanced 33 per cent to Sh2.2 billion from Sh1.7 billion in the same period.

Muriuki attributed growth in commission incomes to increases in non-funded income streams such s foreign exchange income, fees and commissions on loans and advances, electronic banking services, trade finance and personal and business banking.

Total assets

Loans and advances to customers, majority of who are small-scale farmers and business owners, grew 45 per cent to Sh43.4 billion from Sh30 billion, while customer deposits surged 16 per cent to Sh59.1 billion from 50.8 billion.

Total assets jumped 23 per cent to Sh72.1 billion from Sh58.7 billion.

"The commendable performance by the bank during the last six months is in line with the bank’s strategic turnaround and repositioning over the last seven years," said Muriuki.

The bank, the country’s fourth largest by asset base, recorded a profitability of Sh2.3 billion last year, marking a dramatic full circle turnaround from the huge loss of over Sh2 billion in 2001

Source: The Standard