by Martin Oduor
The Co-operative Bank has highlighted a game changing move to play a crucial role in funding the provision of affordable housing – which is part of president Uhuru’s big four agenda that includes food security, affordable housing, manufacturing and affordable healthcare for all.
While releasing Half-year 2018 Financial Results of the Co-operative Bank, managing director and CEO Gideon Muriuki announced that Co-op Board of Directors had approved a key Ksh 200 million capital injection in the share capital of the Kenya Mortgage Refinance Company (KMRC).
In acquiring shareholding in KMRC, Co-op bank will be a key player in implementing Uhuru’s big four agenda since the Ministry of Finance had already kicked-off the initiative of KMRC to source for long-term financing to fund the provision of affordable housing to the majority of Kenyans.
The bank and the Co-operative Movement/Saccos (that predominantly own the bank) expect to be key partners with the government and will play a critical role on this key social/economic agenda.
9.98 billion profit in half year 2018
Meanwhile the Co-operative Bank Group recorded a profit before tax of Kshs 9.98 billion for the first half of 2018 compared to Kshs 9.3 billion recorded in a similar period in 2017 – an impressive growth of +7.6% against the backdrop of a challenging economic environment in the period.
Profit after tax was Kshs 7.1 Billion compared to Kshs 6.6 Billion in the previous year, a +7.6% rise. This is a commendable performance in an operating environment that is gradually recovering from the significant headwinds that business had to contend with in the aftermath of the 2017 Elections.
The good performance represents the tangible benefits arising from the bold “Soaring Eagle” Transformation Project that the bank has been implementing since 2014 with a clear focus on improvement in operating efficiencies, sales-force effectiveness and innovative customer delivery platforms.
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%) also made a profit before tax of Kshs 114.6 Million in half-year 2018 compared to a marginal loss of Kshs 60,000 in the first half of 2017.
Corporate Social Responsibility Programs
Co-op Bank Foundation continues to provide 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 6,331 students since the inception of the program in 2007.
The Group was recognized by Banker Africa, East Africa Awards 2018 with three key awards, namely the Best Retail Bank in Kenya, The Best SME Bank in Kenya and the Best Investment Institution in Kenya. This is a re-affirmation of the bank’s unique position as a bank that positively influences the lives of the majority of Kenyan citizens.
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July 23, 2019
July 23, 2019
July 23, 2019