Tag: Dr. Gideon Muriuki coop bank md news

Isuzu East Africa and Co-op Bank Partner to Empower Schools and Businesses through Flexible Vehicle Financing

Posted on by Kibaki Muthamia

Isuzu East Africa and the Cooperative Bank have announced an Asset Finance Scheme designed for schools and businesses that desire easier financing terms to cope with the current operating environment.

A good number of educational institutions and business continue to record reduced cashflows, which therefore calls for easier financing terms.

At an event held at Isuzu East Africa, the motor vehicle assembler’s Managing Director, Rita Kavashe said that:

“Today, Isuzu East Africa, has partnered with the Cooperative Bank to provide solutions that will address the needs of our customers during these challenging economic times. We are thrilled to launch a Financing scheme that provides a ninety five percent Financing option for Isuzu N-series, Isuzu F-series and Isuzu Pickups TFS and TFR Series.”

During the signing of the partnership between Co-op Bank and Isuzu EA for school bus financing. (Image: Twitter).

The current operating environment has affected the ability of many schools and businesses to secure necessary cash deposits for asset purchases.

This financial constraint limits their ability to initiate or expand investments in critical assets.

The Isuzu/Cooperative Bank Asset Finance Scheme provides the financial boost to enable customers raise enough cash deposits for purchasing new vehicles.

“The partnership aims to make vehicle acquisition easier for Kenyan schools and businesses with 100% and 95% asset financing respectively. The financing options cover all Isuzu vehicle models,” Rita explained.

On his part, Cooperative Bank Managing Director and Group CEO Dr Gideon Muriuki, observed that the Bank partnership with Isuzu East Africa is designed to assist educational institutions and business acquire the critical assets they require within their current financing abilities.

“We have observed that a good number of our business customers are giving priority to financing their stocks and operations.

We have therefore made available an additional digital credit of upto Ksh.1 million for MSME customers and Ksh.2 million to schools over and above the 95% and 100% asset Financing.” said Dr. Muriuki.

In addition, Co-op Bank announced that customers will also enjoy an extended loan repayment period of upto 72 months.

Educational institutions will have a one-term moratorium when they purchase the buses, with Repayment extended to 72 months on termly basis, which adds up to 18 terms at 0% processing fee, in addition to a working capital loan of up to Ksh 2 million.

Breakdown of Co-op Bank’s virtual 14th Annual General Meeting

Posted on by Kibaki Muthamia

Co-operative Bank of Kenya today virtual held its 14th Annual General Meeting.

This is the third time the meeting has been held virtually following amendments to the law governing annual general meetings, following the Covid-19 epidemic.

Co-op Bank Group Managing Director Gideon Muriuki during the virtual meeting

The overwhelmingly successful meeting was attended by over 16,000 shareholders from across the globe.

Share holders welcomed the dividend payment scheduled to hit their accounts on 17Th June 2022.

The shareholders were appreciative of the Board of Directors’ divided policy that balances between the need for additional capital and shareholders immediate interest for earnings.

They particularly commended the Group Board for the kes 100billion retained earnings the bank has accumulated for future growth through this policy.

Kingdom Bank – one of the best performing Co-op Bank’s subsidiaries.

Speaking at the meeting the Group Managing Director, Dr. Gideon Muriuki pointed out to the shareholders that the bank was confident of a good performance in 2022 full year.

The MD estimated that the bank will surpass the over 22Billion profit registered in 2021, “ already in the first quarter of 2022 the bank has registered a profit before tax of kes 7.8Billion which is an indication of better days ahead.”

The meeting was chaired by the Bank Chairman Mr. John Murugu and was also attended by the Vice Chairman Mr. Macloud Malonza among other board members who attend virtually.

The Co-operative Bank jolts banking sector by a record Kshs. 5.1 Billion profit in first quarter 2020

Posted on by Kibaki Muthamia

The Co-operative Bank Group has an encouraging winning angle against the obstacles occasioned by the ravaging pandemic to report a Profit before Tax of Kshs 5.1 Billion for the first quarter of 2020, a performance closely reflecting last year’s 2019 first quarter results. Profit after Tax was Kshs 3.6 Billion.

The Group has a comprehensive mitigation strategy to cancel out an unpredictable working environment demanded by the Covid-19 pandemic. They have a strategy intended to ensure full banking services continue being accessible to customers in a safe environment consistent with the Ministry of Health guidelines. Most attention has been thrust to digital channels, and branches remain open albeit with constant attention to detail to keep clients safe.

The report has a few highlights;

  1. Profit&Loss
  • Total operating income grew by 12.5%from Kshs11.1Billion to Kshs12.5 Billion
  • Total non-interest income increased by 19% from Kshs 4.2 Billion to Kshs 5.0
  • Billion
  • Net interest income increased by 8.5% from Kshs 6.9Billion to Kshs 7.5 Billion

Total operating expenses grew by 20.6% from Kshs 7.3 Billion on account higher loan loss provision and staff expenses.

  1. Balance sheet
  • Total assets grew by Kshs 44.7% (+10.5%) to Kshs 470.4 Billion from Kshs 425.7 Billion recorded in the first quarter 2019.
  • Net loans and advances book grew by 24.5 Billion (9.8%) to stand at Kshs 276.2 Billion compare to Kshs 251.6 Billion in 2019.
  • Investment in government securities grew by Kshs 22. 9 Billion (+11.5%) to Kshs 115.9 Billion compared to Kshs 103.9Billion in 2019.
  • Customer’s deposits grew by 6.9% from Kshs 317.8 Billion to Kshs 339.6 Billion.
  • Borrowed funds from development partners grew by Kshs 3.7 Billion (+15.5%) to Kshs 27.4 Billion compared to Kshs 23.7 Billion in 2019.
  • Shareholders’ funds grew from Kshs 82.0 Billion (+12.7) from Kshs 72.8 Billion in 2019.This has enabled the bank to continue to pitch for big ticket deals.
  1. Innovative customer delivery platform.
  • Through our multi-channel strategy ,the bank has successfully moved almost 90% of all customers transactions to alternative delivery channels ,an expanded 24-hour contact center ,mobile banking ,584 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 Milllion Account holders across all sectors.
  • Key focus on digital banking ,with all -telco MCo-op Cash mobile wallet continuing to play a pivotal role in the growth of non-funded income with 5.6 Million customers  registered  and loans with over Kshs. 16 Billion disbursed in quarter 1 2020
  • Over 85, 252 customers have taken up the MSME packagers that we rolled  out in 2018, and 5,000 have been trained on business management and planning .We have earmarked  Kshs 15.2 Billion to MSME lending ,with Kshs 12.4 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 1.8 million Sacco -link cards .

In a press release, Dr. Gideon Muriuki, Group Managing Director & CEO, also gave credence to the bank’s subsidiaries, like The Co-op Bank of South Sudan with a profit before tax of Kshs.20.7 Million before tax in first quarter 2020. Another major one is the Co-op Consultancy and Insurance Agency with a Kshs.250.5 Million contributed as at 31st March, 2020; and Co-op Trust Investment adding Kshs.20.5 Million.

In addition, the Group has re-aligned close to Kshs.15 Billion to cushion their clients servicing loans from the effects of the pandemic. Co-op clients have had loan repayment periods lengthened, adjusted interest moratorium periods and additional funding if need be to ride out the difficult period.

The Board of Directors have also approved the talks leading to 100% acquisition of Jamii Bora Bank Ltd, which has an asset base of Kshs.20.5 Billion. Due diligence for the acquisition is ongoing.

The Co-op Bank foundation also reports providing scholarships to a tally of 7,657 gifted but needy students across the country since inception. These scholarships cover includes full fees from secondary too university level, internships and later job openings.

Recently, Co-op Bank also boosted the Covid-19 Emergency Response Fund with a cash donation of Kshs.100 Million.

In light of these details, it’s not a surprise that Co-op Bank was named Overall Winner of the Kenya Banker’s Association (KBA) 2019 Sustainable Finance Catalyst Award.

Co-op Bank sets the bar for corporates with a Kes.100million donation to the COVID-19 Emergency Response Fund

Posted on by Kibaki Muthamia

The Co-operative Bank of Kenya becomes the first corporate institution to act by donating 100 million to the COVID-19 emergency fund to fight the ravaging pandemic. The contribution is expected to support the sourcing of critical life-saving medical supplies and equipment, especially ventilators.

In a letter released to media houses, Group Managing Director & CEO, Dr. Gideon Muriuki is recognizant of the fact that it’s a critical moment for our country, Kenya. He tagged the outbreak of the COVID-19 pandemic as the biggest crisis of our time, particularly in the effort to source critical life-saving medical supplies and equipment, like ventilators that are in short supply globally.

Dr. Muriuki further appreciates the gallant efforts of H.E. The President, Uhuru Kenyatta, in leading the fight from the front and rallying the country to come together as one.

The appointment of the COVID-19 Emergency Response Fund Committee to mobilize resources for the fight gives all Kenyans and indeed the entire community of goodwill the opportunity to offer their much-needed support.

The Group’s CEO further made a passionate appeal to other corporate institutions and Kenyans of goodwill to join hands and support the most worthy once-in-a-generation global fight against a common enemy.

We shall overcome; Psalm 91:1-4