Tag: Coop bank Scholarships news

Co-operative Bank spurs tech innovators by launching the “Akili Kali Innovation Challenge”

Posted on by Kibaki Muthamia

Co-operative Bank today launched the Co-op Akili Kali Innovation challenge that is focused on engaging and partnering with technology innovators to address the gaps and challenges faced by Cooperative Societies.

The challenge, which is supported by the International Finance Corporation (IFC), is a call for passionate innovators to collaborate with Co-operative Bank in building the next generation of financial solutions beneficial to the Co-operative movement and its membership of over 20 million Kenyans.

Applications may be submitted through the Co-operative Bank website by 7th August 2020. The shortlisted candidates will be taken through a 5-week co-development and co-design program supported by a dedicated team from Co-operative Bank and nominated Cooperatives, after which a virtual demo event will be held to select one or more winners.

The winners stand to be awarded a cash reward of up to Kes 5M and an opportunity to integrate and launch their innovation with Co-operative bank.

Co-operative Bank is looking for technology innovators that can rapidly develop solutions to build value for Co-operatives and enable them to service members’ demands more efficiently while ensuring that the essence of the Co-operative movement, which is engrained in enabling both national and social development for individuals through a shared economy, is sustained.

The new innovations will also give co-operatives a competitive edge and strengthen their resilience in the rapidly changing financial landscape in Kenya, particularly in light of the myriad challenges occasioned by COVID-19.

The Co-operative Movement in Kenya is the largest in Africa and among the top 10 globally, with over 22,000 registered Co-operatives and over Kes 600B in savings. Co-operatives play a major role in all the key sectors of the economy including Education, Agriculture, Housing and Transport.

It employs more than 500,000 people besides providing opportunities for self-employment to many more.

Co-operative Bank has a long history with the Co-operative movement, having been started by coffee farmers back in 1968 and now owned 64.56% by Co-operatives through a special purpose vehicle known as Co-op Holdings Limited.

Speaking during the rollout of the Co-op Akili Kali Innovation Challenge, the Bank’s Director of Co-operatives Banking, Mr. Vincent Marangu, noted that the growth trends of co-operatives in Kenya indicate a great opportunity for co-operatives to offer valuable services to existing and potential new members whose demand for more and better services has grown with the digital revolution.

Co-operative Bank leads the banking industry with pre-tax profit of Ksh. 20.7 Billion in 2019

Posted on by Kibaki Muthamia

The Co-operative Bank Group is delighted to report a Profit before Tax of Kshs.20.7 Billion for Full Year 2019 compared to Kshs.18.2 Billion recorded in 2018, a strong growth of 14% in the year. Profit after Tax was Kshs 14.3 Billion compared to Kshs 12.7 Billion in the previous year.

The Group continues to leverage on the benefits of the “Soaring Eagle” Transformation Agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments and Counties, which has progressively deepened our celebrated Financial Inclusion model rooted in the over 15 million-member co-operative movement that is the face of Kenya.

The Group has continued with a strategy of ‘increased dominance’ in the Domain Market Segment (Kenya) leveraging on our successful penetration of the Retail and Consumer Banking, Micro, Medium and Small Enterprises, Corporate Banking and the Co-operative Movement; while reviewing opportunities to grow alternative income streams from other services like Bancassurance and non-funded income streams.

Key financial highlights include; –

  1. Profit & Loss
  • Total operating income grew by 10.9% from Kshs 43.68 billion to Kshs 48.46 billion.
  • Growth in Operating Income attributed to an increase in Total interest income from Kshs 43.02 billion to Kshs 43.64 billion on account of; Interest income from government securities increasing by 16% from Kshs 9.79 billion to Kshs 11.35 billion. Interest income from loans & advances decreased slightly by 3.5% from Kshs 32.95 billion to Kshs 31.78 billion.
  • Interest expense remained under tight control, increasing marginally by Kshs 96 million from Kshs 12.24 billion to Kshs 12.34 billion. This was despite an 8.6% growth in deposits indicating improved management of the cost of funds.

     2. Balance sheet

  • Total assets grew by Kshs 43.6 Billion (+10.5%) to Kshs. 457 Billion from Kshs 413.4 Billion recorded at the close of year 2018.
  • Net loans and advances book grew by 21.31 billion (8.7%) to stand at Kshs. 266.71 billion compared to Kshs. 245.41 billion in 2018.
  • Investment in Government securities grew by Kshs.37.53 billion (+46.8%) to Kshs. 117.80 billion compared to Kshs. 80.27 billion in 2018.
  • Customers deposits grew by 8.7% from Kshs. 306.12 billion to Kshs 332.82 billion
  • Borrowed Funds from development partners grew by Kshs. 2.47 billion (+10.3%) to Kshs 26.42 billion compared to Kshs.23.95 billion in 2018.
  • Shareholders’ funds grew to Kshs. 79.33 billion in 2019 (+13.6%) from Kshs 69.86 billion in 2018. This has enabled the bank to continue to pitch for big-ticket deals.

      3. Innovative Customer Delivery Platforms

  • Through our multi-channel strategy, the Bank has successfully moved almost 90% of all customer transactions to alternative delivery channels that include self-service kiosks in 159 branches, an expanded 24-hour contact centre, mobile banking, 583 ATMs, internet and over 16,700 Co-op Kwa Jirani banking agents.
  • A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve over 8 million Account-holders across all sectors.
  • Key focus on digital banking, with the all-telco MCo-opCash Mobile Wallet continuing to play a pivotal role in the growth of non-funded income with 4.8 Million customers registered and loans worth over Kshs. 43.1 Billion disbursed as at close of the year.
  • Over 70,000 customers have taken up the MSME packages we rolled out in 2018, and 5,000 have been trained on business management and planning. We have earmarked KShs. 15.2 billion for MSME lending, with Kshs. 8.05 billion disbursed to date.
  • Our unique model of retailing banking services through Sacco FOSAs enabled us provide wholesale financial services to over 479 FOSA outlets, and issue over 1.18 Million Sacco-Link cards.

      4. Subsidiaries

  • Co-operative Bank of South Sudan that is a unique Joint Venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit before tax of Kshs 240.6 Million in 2019. This performance however translated to a monetary loss of Kshs 344.7 Million attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudanese pound.
  • Co-op Consultancy & Insurance Agency contributed 714 Million as at 31st December 2019.
  • Co-op Trust Investment Services has aggressively grown the funds under management to 102.1 Billion as at 31st December 2019 compared to Kshs. 40.5 Billion at as at 31st December 2018.

       5. Proposed Acquisition of 100% Shares of Jamii Bora Bank Limited

The Board of Directors of Co-operative Bank of Kenya Limited reported on 11th March 2020 having approved the progression of discussions with Jamii Bora Bank Limited, which if successful, would lead to the Co-operative Bank of Kenya Limited acquiring the 100% shareholding in Jamii Bora Bank Limited.

Jamii Bora Bank is a Kenyan bank incorporated under the Companies Act with over 350,000 customers in 17 branches and asset base of Kshs 12.5 billion.

The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offering to the enhanced customer base, and create a niche bank to offer specialised credit offerings that include MSME Banking, Microfinance, Youth & Women Banking, Asset Finance and Leasing.

  1. Corporate Social Investment

Co-operative Bank Foundation has provided Scholarships for gifted but needy students from all regions of Kenya. The sponsorship includes; fully-paid secondary education, full fees for University education, Internships and career openings for beneficiaries. The Foundation is fully-funded by the bank and has so far supported 7,657 students since inception.

       7. Accolades

Co-operative Bank was named Overall Winner of the Kenya Bankers Association (KBA) 2019 Sustainable Finance Catalyst Award. The Awards recognize institutions that practice sustainable finance which has a direct positive impact on the financial sector, the economy, the environment and the society. The bank scooped two more awards in the green energy space; being named Best Bank in Sustainable Finance in Kenya at the 2019 Energy Management Awards hosted by the Kenya Association of Manufacturers, and in addition recognised as Overall Winner in Environmental Sustainability Reporting at the 2019 East African Financial Reporting (FiRe) Awards held in Nairobi. The Bank was also named Best Bank in Kenya by EMEA Finance African Banking Awards 2019.

       8. Dividend

 The Board of Directors has recommended for approval by the AGM the payment of a dividend of Kshs.1.00 per every ordinary share held subject to approval by the Capital Markets Authority.

Conclusion

 The Co-operative Bank Group will continue to deepen market share leveraging on the 8.8 million account-holder base, digital banking, the basket of innovative financial solutions, efficient delivery of services and multichannel access.

 

 

 

Co-operative Bank sustains support to H.E. The First Lady’s Beyond Zero Initiative

Posted on by Kibaki Muthamia
The Co-operative Bank of Kenya has extended a Kes.20 Million boost to the First Lady’s Maternal and Child Healthcare Half Marathon initiative. The First Lady’s Half Marathon is to be held on Saturday 8th March 2020, to raise awareness and galvanize support towards maternal and child health.

This latest Kes.20 Million contributions is the fifth such donation by the Bank, which brings the cumulative contribution by the Bank to over Ksh80 million donated in the last 6 years.

The sponsorship has supported, among other needs, the purchase of three brand new fully-equipped mobile clinics that were donated to Narok, Nandi and Kirinyaga counties.

Since its inception in January 2014, Beyond Zero, on which the Half Marathon is anchored, continues to play a key role in the elimination of preventable maternal and early childhood deaths as outlined in the Beyond Zero Campaign.

The success of Beyond Zero is well demonstrated by the progressive improvement in key maternal health indicators as well as HIV prevention and management. There has also been an increase in stakeholder participation and goodwill, all necessary for a healthy population.

We greatly commend the First Lady for her bold declaration that she shall be on the frontline in the fight against HIV/AIDS to see an HIV-free generation in her lifetime.

We are confident that if Beyond Zero maintains the current momentum, Kenya will be on its way to becoming a safe haven for mothers, children, and adolescents where motherhood is enjoyed and children born AIDS-free.

In this context, the Co-operative Bank is most proud to support the First Lady’s Initiative alongside other worthy causes that include the School Fees Bursary Program that has supported over 7,000 gifted but needy students, and capacity-building in the over 15 million-member co-operative movement under the Co-operative Bank Foundation.

Presenting the donation at State House, Nairobi, the Co-operative Bank Group Managing Director & CEO, Dr. Gideon Muriuki said that the Bank feels honored to continue supporting Beyond Zero on account of being a local bank whose clients largely come from rural areas where Beyond Zero interventions have the biggest impact.

“Being a Kenyan bank and being in the rural areas we are indeed one of the beneficiaries of this great initiative and we can only commend you for the mentorship and leadership that you provided on this and we are extremely proud to be part of this journey,” Dr. Muriuki said.

“When you give to the poor is like lending to the Lord, and the Lord will pay you back.” Proverbs 19:17

In addition to the cash contribution, the Co-operative Bank will send teams to take part in the 2020 First Lady’s Half Marathon.

Co-operative Bank education scholarships benefit 7,583 students across the nation

Posted on by Kibaki Muthamia

The Board of Directors of the Co-operative Bank is pleased to announce the successful completion of the selection of beneficiaries of this year’s annual intake of 655 gifted but needy students from across the country to join the Cooperative Bank Foundation Scholarship Scheme in 2020.

This year’s intake of 655 Form One beneficiaries stands as one of the largest secondary education scholarship schemes in Kenya today. The program is fully funded by the Bank to the tune of Sh155 million every year.

Of the 655 new scholarships to Form One students, 420 were identified by the bank’s Regional Delegates’ Forums and the remaining 235 scholarships, at 5 per county, awarded by County Governments in all the 47 counties, the bank’s Group Managing Director & CEO, Dr. Gideon Muriuki has said.

Additionally, the bank is educating a total of 177 students, selected from the top performing beneficiaries of the secondary school scholarships, through their entire university education.

Following this year 2020 intake, the Co-operative Bank will have provided full education sponsorship to 7,640 deserving Kenyans, of whom 7,332 will have gone through secondary education and 308 university studies.

The scholarships are awarded on merit to gifted but needy students from all regions of Kenya.

Commenting further on this program, Dr. Gideon Muriuki said, “Our scholarship beneficiaries are selected at the grassroots level by Co-operative Societies across the country through a well-established national delegates system. Co-operative Societies, who are the face of Kenya, identify well-performing students from disadvantaged backgrounds and bring these names into a regional forum where delegates debate and select the most deserving cases. At the bank’s head office, our role is to process payments to the schools and monitor the students’ performance through the four years in secondary school. The top 28 in the Form Four examination each year are granted an additional full scholarship for their university education.”

Commenting on the reason why the bank has chosen education scholarships as its flagship Corporate Social Investment, Dr. Gideon Muriuki observed that education is one of the most expensive items in any household budget and yet has the highest potential to liberate people from poverty.

“Unless corporate institutions and all people of goodwill come together to support initiatives within the education sector, gifted but needy Kenyans will never realize their full potential. Being needy does not mean that one isn’t talented or has no potential. A large number of Kenyans holding positions of responsibility today were educated with loans from the Co-operative Movement.  It is for this reason that the Co-operative Bank, being the premier co-operative institution in Kenya, has taken the lead in this area.”

Co-operative Bank provides full school fees scholarships for the entire four years of secondary education. University scholarships are awarded to the best performing students from each region.

The scholarship program was launched in 2007.

More information on this scholarship program is available from the Branch Manager at your nearest Co-operative Bank branch, or email [email protected] or call 0711 049 475, 020 3276 100 and ask for Co-op Bank Foundation.