Tag: Co-operative bank news

Co-operative Bank has emerged as the Overall Winner of the Kenya Bankers Association (KBA) 2017 Sustainable Finance Catalyst Award.

The Awards were created to recognize institutions t hat practice sustainable finance which has a direct positive impact on the financial sector, the economy, the environment and the society at large.

Sustainable Finance Principles require financial institutions to balance their quest for financial returns with the economy’s future priorities and social-environmental concerns.

Co-op Bank beat 13 other banks that had been shortlisted to showcase their progressive stance in integrating sustainability practices in their respective institutions.

Businesses were appraised on whether they have covered the essential indicators which included the impact to the Gross Domestic Product (GDP), the growth of the business, job creation and support of minority groups including women and the youth.

Why Co-op bank won

Co-op Bank emerged winner as a result of building a sustainability strategy that enables people, businesses and society to grow in a way that is sustainable in the long-term.

Co-op Bank was hailed for solely financing the iconic Two Rivers Shopping Mall project to a tune of USD. 80Million resulting in impressive economic, social and environmental development.

Key contributions include Shs.889M taxable income, installation of a 2,000 kW grid-connected solar system, economic re-generation of the neighbourhood, and over 1000 direct jobs created with 90% of them going to women and youth.

Co-op Bank also stood out for championing Green Finance, by financing investments in the fields of energy efficiency and renewable energy worth in excess of USD50 Million. These include financing of mini-hydro power plants such as the 6 megawatt Gura Power project of KTDA that replaced the use of wood fuel in tea factories, and the 600 kilowatt solar plant by Strathmore University that supplies all energy needs of the campus with surplus sold to the grid, the first solar plant connected to the grid.

“Sustainability is fully integrated in our business model that stands on the three pillars of Economic sustainability, Social sustainability and Environmental stewardship. As a bank that is predominantly-owned by the 14 million-member Co-operative Movement, we are inclusive by design that has not only enabled us to deliver shared prosperity today, but also helped us build an awareness and prudence to avoid putting future generations in
jeopardy,” said Dr. Gideon Muriuki, Group Managing Director & CEO Co-operative Bank.

This year’s judges are:
1. Mr. Tumurkhu Davaakhuu, the Vice President of the Mongolian Bankers Association
(MBA)

2. Engineer Dan Likuyi Ndenga, co-founder of energy advisory firm Miltec Engineering
Limited

3. Mr. Edward Mungai, the Chief Executive Officer of the Kenya Climate Innovation
Center (KCIC)

4. Dr. Peter Muriu, a Financial and Monetary Economics lecturer at the University of
Nairobi

5. Ms. Rosemary Mutunkei, a Corporate Sustainability and Social Investment practitioner

6. Ms. Anne Macharia, a Senior Compliance and Enforcement Officer at the National Environment Management Authority (NEMA)

The Award categories include:

Category 1:

• Best Practice in Sustainable Finance
• Sustainability Through Policy & Governance

Category 2:

• Client Case Study – Financing Micro, Small & Medium-Sized Companies
• Client Case Study – Financing Commercial Clients
• Bank Case Study – Bank Operations & Policy

Special Category:
• Best Overall Award

The Board of Directors of the Co-operative Bank has announced the release of the final list of selected beneficiaries of this year’s annual intake of 655 gifted but needy students from across the country to join the Co-
operative Bank Foundation Scholarship Scheme in 2018.

This year’s intake of 655 Form One beneficiaries stands as the largest secondary education scholarship scheme in Kenya today.

Of the 655 new scholarships to Form One students, 420 were awarded 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 and CEO Dr. Gideon Muriuki has said.

Additionally, the bank is educating a total of 159 students, selected from the top performing beneficiaries of the secondary school scholarships, through their entire university education.

Scholarship beneficiaries selected at grassroots level

Following this year 2018 intake, the Co-operative Bank will have provided full education sponsorship to 5,899 deserving Kenyans, of whom 4,110 will have gone through secondary education and 140 university studies. The scholarships are awarded on merit to gifted but needy students from all regions of Kenya.

“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 banks’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,” Dr. Gideon Muriuki said.

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, brilliant but needy Kenyans will never realise their full potential. Being poor does not mean that one isn’t bright 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.

Money transfer is on the rise as the world is increasingly becoming a global village. So how do you safely send and receive money across the world?

There are at least 8 money transfer options you can use to easily and securely send money to your loved ones from wherever you may be.

These money transfer options allows you to send and receive money to and from your Co-operative bank to other banks accounts from across the world. They include:

Real Time Gross Settlement

This is a safe and reliable money transfer option of sending money from your Co-op Bank Account into another bank account in Kenya. This transfer goes through on the same day subject to a cut-off time of 2 PM.

Electronic Funds Transfer

An EFT allows you to transfer money from your Co-op Bank account to another bank account within Kenya. These transfers take 3 business days.

PoaPay

PoaPay allows you to send money from the USA to a Co-op Bank Kenya account from the comfort of your home, workplace or any computer with an internet connection. There are no long lines and no need to interrupt your busy day to travel to a merchant, agent or bank to send money.

Simply log on to www.PoaPay.com, register as a user, enter your recipient’s contact information, the amount you wish to send and send the money.

SimbaPay

SimbaPay is a secure and affordable way to send money directly from the UK into a Co-op Bank account. This service enables Kenyans in UK to send money home without incurring extra cash transfer charges.

To send money via SimbaPay, simply download the SimbaPay app from the App Store or the Google Play Store and then transfer the money using your phone, tablet or PC into the recipient’s Co-op Bank account.

Jambo Global

Jambo Global is a safe way to send money from the UK into a Co-op Bank account.

You can use the following options to transfer money via Jambo Global:

• Visit a Jambo Global outlet to make a deposit directly to a Co-op Bank account. Write your name as a reference on the bank deposit slip.
• Send a text or WhatsApp message on 07852459893 or email Jambo Global on [email protected] nd provide the full name, telephone number, city or bank details of the Co-op Bank recipient.
• A deposit can also be effected online via the Jambo Global mobile app. Download the app on the App Store or Google Play Store.

Wave

Wave is a fast, safe and affordable way to send money from the United States into a Co-op Bank account. Sending money via Wave is as simple as sending a text message. The funds arrive instantly into the bank account.

Install the Wave app on your mobile phone from Google Play Store or the App Store.

UAE Exchange

UAE Exchange allows you to deposit money directly into a Co-op Bank account via .

SWIFT Transfers

The SWIFT international payment network is one of the largest financial messaging systems in the world. TransferWise can send or receive certain currencies via SWIFT payment.

Click the link below for more information about these money transfer:

Global money transfer options

Christmas is a season of sharing and sending/receiving money is part of that sharing. So how do you send or receive money locally or globally?

There are three medium that are reliable and convenient when sending or receiving money locally or across the world:

1.Western Union

2. MoneyGram

3.TransFast

For Western Union, all you need to send money is:

i)Request for the MTCN (tracking number) – The person sending you money will receive a tracking number when the transaction is completed. Ask them for the MTCN to make it easier and faster to pick up your money.
ii) Visit your nearest Co-op Bank branch- Take your MTCN and your national Identity card, a valid passport or a government issued ID to pick up your money.
iii)Complete the ‘receive’ form – A receive form is available at our branches countrywide.
iv)Show your identification
v) Once verified, you will receive your money (usually in local currency (Kenya shillings)

To send money via Western Union, you need:

i)Visit the nearest Co-operative Bank branch.
ii)Complete a simple money transfer form where you will indicate: the amount you wish to send, destination country, and the name of the person you intend to send to.
iii)Give the teller the completed form with the applicable funds (including transaction fee). Pay with cash or you may debit your Co-op bank account.
iv) The agent/teller will process the transaction and give you a receipt and MTCN number for the transaction
v)Contact the person receiving your money transfer and let them know the transfer has been done and provide the MTCN for them to receive the money.
vi)Save your receipts for the record.

For MoneyGram, all you need to receive money is:

i)Request for the reference number – The person sending you money will receive a reference number when the transaction is completed. Ask the reference number to make it easier and faster to pick up your money.
ii)Visit your nearest Co-operative Bank branch- Take your reference number and your national Identity card, a valid passport or a government issued ID to pick up your money.
iii)Complete the ‘receive’ form – A receive form is available at any of our 140 plus branches countrywide. The form is required to pick up transferred money. Complete all fields and:
Include the reference number
iv)Show your identification
Once verified, you will receive your money (usually in local currency (Kenya shillings) ).
Important: Your name on the transfer record must exactly match your name as it appears on your ID. Otherwise you may be delayed or be unable to pick up your funds.

To send money via MoneyGram, you need to:

i)Complete a simple money transfer form including the amount you wish to send, destination country, and the name of the person you intend to send to.
ii)The agent/teller will calculate for you the cost of the transaction and process the transaction.
iii)You’ll receive a receipt and reference number for the transaction. Save both for your records.
iv)Contact the person receiving your money transfer and let them know the transfer has been sent and provide the Reference Number
v)For more details-kindly visit any of our branches countrywide.

For TransFast, all you need to receive money is:

i)Request for the Transfast PIN – The person sending you money will receive a tracking number when the transaction is completed. Ask them for the Transfast PIN to make it easier and faster to pick up your money.
ii)Visit your nearest Co-op Bank branch- Take your Transfast PIN and your national Identity card, a valid passport or a government issued ID to pick up your money.
iii)Complete the ‘receive’ form – A receive form is available at our branches countrywide.
iv)Show your identification
v) Once verified, you will receive your money (usually in local currency (Kenya shillings)

2017 has been a bad year for businesses in Kenya due to political uncertainty. All the same the Co-operative Bank still managed to record profit.

The Co-operative Bank Group reported a Profit before Tax of Ksh13.7 billion for third quarter 2017 compared to Ksh 15.2 Billion recorded in the same period 2016, a commendable performance against the backdrop of a tight operating environment especially with the capping of interest rates and the general economic slowdown in an election year.

Profit after tax for the period was Ksh 9.5 billion compared to Ksh 10.5 billion the previous year.

The Group has a sustained focus on long-term profitability, with current challenges in the operating environment being mitigated by the benefits arising from the successful execution of the ‘Soaring Eagle’ Transformation project with critical focus on improved operational efficiencies, customer service and lower operating costs.

As a result, Co-op’s Cost to Income ratio continues to improve from 52.1% in FY2016 to 47.6% in the third quarter 2017.

Key financial highlights include;-

1. Balance sheet

• Total assets grew by Kshs 34.2 billion (+9.7%) to Kshs. 388.3 billion compared to Kshs 354 Billion in the same period last year.
• Net loans and advances book grew by Kshs 32.4 Billion (+14.2%) to Kshs. 259.4 billion compared to Kshs. 227 billion in the same period last year.
• Customer deposits grew by Kshs. 31.2 billion (+12.1%) to Kshs. 289 billion compared to Kshs. 257.8 billion in the same period last year.
• Shareholders’ funds grew from Kshs. 59.2 billion to Kshs. 67.3 billion, an impressive growth of 13.8%, supported by a steady growth in earnings retention and a dividend policy anchored on progressive growth.

2. Profit & Loss

• Total interest income reduced by 7.7% from Kshs 32.3 billion in 3Q2016 to Kshs 29.9 billion in 3Q2017.
• Total interest expense reduced by 8.5% from Kshs 9.9 billion in 3Q2016 to Kshs 9.1 billion in 3Q2017 on account of reduced cost of funding.
• Total operating income reduced marginally by 4.3% from Kshs 32.3 billion in 3Q2016 to Kshs 30.9 billion in 3Q2017.
• Interest income from loans & advances declined by 6.9% despite the 14.2% increase in net loans & advances.
• Total operating expenses increased marginally by 0.7% from Kshs.17.15 billion to Kshs17.25 billion.

3. Innovative Customer Delivery Platforms

• A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve 6.8 million account-holders across all sectors supported by our multichannel strategy that includes 149 Branches, over 10,000 Co-op Kwa Jirani Banking Agents and over 580 ATMs.
• The all-telco Mco-op Cash Mobile Wallet has continued to play a pivotal role in the growth of non-funded income with over 3.46 Million customers.
• Through Co-op’s multi-channel strategy the Bank has successfully moved 86% of customer transactions to alternative delivery channels particularly mobile banking, ATMs, internet and Co-op Kwa Jirani bank agency outlets.
• Co-op’s unique model of retail banking services through Sacco FOSAs enabled them to provide wholesale financial services to over 560 FOSA outlets. The bank has currently issued over 1 Million Saccolink cards.
• Co-op bank continues to focus on Digital Bank which ensures timely, business-led solutions delivery to customers.

4. Regional Expansion

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 of Kshs. 30 Million in the period under review despite the tough operating environment.

5. Corporate Social Responsibility Programs

• Through Co-op Consultancy Services; the Group has greatly invested on key capacity building initiatives in the 15 million member Co-operative Movement, with now over 22,000 co-operative societies/Saccos in all sectors of the economy countrywide.
• Co-op Bank Foundation has provided Scholarships for gifted but needy students from all counties in 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 over 5,119 students since the inception.

6. New Business – Co-op Bank/Super Group Leasing Joint Venture

In the second quarter, Co-operative Bank entered into a Leasing business joint venture agreement with Super Group Limited, an established leader in leasing business that is listed on the Johannesburg Stock Exchange.

The joint venture will take advantage of key strengths by the two partners and focus on the emerging opportunities in leasing business with the bank providing the customer base and Super Group providing proven products, technology and expertise on the running of a scalable leasing business.

One prime opportunity arising from the “Soaring Eagle Transformation Agenda” is a focus on growing the top-line by Sales Force Effectiveness aimed at increasing product-holding per customer, and revenues.

The joint venture comes at a time when there are significant market opportunities in the growing Kenyan economy and the region as hereunder;

1. Major infrastructure projects.
2. Government setting the pace with leasing, especially vehicles.
3. Exploration and mining activities including oil and gas.
4. Other sector demands including manufacturing, construction, transport, ICT among others.

The joint venture will also leverage on the support of the Co-operative movement with over 14 Million members and over 22,000 co-operative societies.
The joint venture is being operationalized immediately.

The Co-operative Bank Group is alive to both the challenges presented by the operating environment, and also the wide opportunities offered by Kenya’s growing economy. The Group has put in place strategies to sustain the business on a growth trajectory in the long-term leveraging on our strong balance sheet, solid customer base, and a wide range of service channels, robust ICT framework and a skilled team.

The Co-operative Bank Group has reported a Profit before Tax of Kshs 4.5 billion for the first quarter of 2017 – a commendable performance against the backdrop of a tighter operating environment especially with the capping of interest rates and currency devaluation and hyperinflation on our operations in South Sudan.

Profit after tax was Kshs. 3.2 billion compared to Kshs. 3.4 billion the previous year, a slight drop of 6%.

The strong Group performance is riding on the remarkable gains from the ‘Soaring Eagle Transformation Agenda’ that has closely focused on improving operational efficiency, superior customer service and lower operating costs; The Group has remarkably reduced the overall operating costs with a Cost Income Ratio of only 47.9% this quarter, compared to a ratio of 52.1% similar period last year and a high of 60% in 2014.

Key financial highlights include;-

1. Balance sheet

• Total assets grew by Kshs 27.7 billion (+7.9%) to Kshs. 378.5 billion compared to Kshs 350.7 Billion in the same period last year.
• Net loans and advances book grew by Kshs 32.2 Billion (+15%) to Kshs. 245.9 billion compared to Kshs. 213.7 Billion in the same period last year.
• Customer deposits grew by Kshs. 18.1 billion (+6.9%) to Kshs. 279.8 billion compared to Kshs. 261.7 billion in the same period last year.
• Shareholders’ funds grew from Kshs. 55.3 billion to Kshs. 63.8 billion, an impressive growth of 15.4%, supported by a steady growth in retained earnings and a progressive dividend policy.

2. Profit & Loss

• Total interest income reduced by 10.8% from Kshs 10.7 billion in 1Q2016 to Kshs 9.5 billion in 1Q2017.
• Total interest expense reduced by 26.9% from Kshs 3.9 billion in 1Q2016 to Kshs 2.8 billion in 1Q2017on account of reduced cost of funding.
• Total operating income reduced marginally by 1.8% from Kshs 10.3 billion in 1Q2016 to Kshs 10.1billion in 1Q2017.
• Interest income from loans & advances declined by 7.7% despite the15% increase in net loans & advances.

3. Innovative Customer Delivery Platforms

• A successful Universal Banking model and the implementation of Sales Force Effectiveness has seen the Group serve 6.39 million Account-holders across all sectors supported by our multichannel strategy that includes 149 Branches, over 8,000 Co-op Kwa Jirani Banking Agents and over 580 ATMs.
• The all-telco Mco-op Cash Mobile Wallet has continued to play a pivotal role in the growth of non-funded income with over 3.21 Million customers.
• Through our multi-channel strategy the Bank has successfully moved 88% of customer transactions to alternative delivery channels particularly mobile banking, ATMs, internet and Co-op Kwa Jirani bank agency outlets.
• Our unique model of retail banking services through Sacco FOSAs enabled us provide wholesale financial services to over 550 FOSA outlets. The bank has currently issued over 1MSacco link cards.
• We continue with our focus on Digital Bank which will ensure timely, business-led solutions delivery to our customers.

      4. Regional Expansion

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 loss of Kshs. 34.7 Million in the period under review owing to hyperinflation occasioned by devaluation of the South Sudanese currency.

5. Corporate Social Responsibility Programs

Co-op Bank Foundation has provided Scholarships for gifted but needy students from all counties in 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 5,089 students since the inception of the program in 2007.

The Bank through Co-op Consultancy has a dedicated team of over 13 consultants offering critical advisory services to the co-operative movement.

“The massive investments in the economy in terms of infrastructure, ICT, Energy Generation and Human Capital has seen the economy attract increased inflows of Foreign Direct Investments.  Co-op Bank is well positioned to ride on the expected upswing of the economy after the August elections leveraging on our strong balance sheet, a cost effective operating structure and a highly motivated team,” said Co-op Bank Group Managing Director and CEO Dr. Gideon Muriuki.

Most parents tend to have unsettling feeling wherever schools are about to open, but smart parent are smiling as their children go back to school for the second term.

School fees and shopping expenses are a burden to parents who haven’t discovered life can be much easier by using tailored products offered by the Co-operative Bank of Kenya.

There are 4 services offered by Co-operative Bank that should make all parents smile as their children go back to school:

1.MCo-op Cash

Some parents don’t have money to pay for school fees, and this where MCo-op Cash comes in handy. Parents short of money to pay school fees can get a loan directly from MCo-op cash.

Co-op bank’s interest rate is the lowest in the market at only 1.16% interest rate per month. There are no facilitation fees on this loan or any hidden fees.

It should also be noted that sending money from MCo-op Cash to MCo-op Cash is free. So in case you need to send school fees to someone, use MCo-op cash.

Parents can also use Mco-op Cash to pay school fees at the convenience of their phones. Several schools have integrated to Mco-op Cash so you can just pay school fees via MCo-op cash without being charged extra transaction fees.

Check school codes Here

Parents and students can also use MCo-op Cash to send school fees into a Co-op account or to a Sacco Account. The money reflects into the account immediately. You can also check your account balance via MCo-op Cash.

Download the MCo-op Cash app on your phone from your app/play store and enjoy these amazing services being offered.

2. Co-op Visa Cards

Talk of back to school shopping then Co-op Visa Cards has you covered. Pay for all the shopping you do using Co-op credit or debit cards at No Extra Cost.

There are no additional charges for using the Co-op Bank’s cards to pay for goods and services.

3. Co-op Kwa Jirani Agents

If you need cash this back to school season, you can withdraw money from your from a Co-op Kwa Jirani agent near you instead of rushing all the way to the ATM or queuing in the banking  hall.

And by the way banks will be closed on Sunday and Monday since its Labor day, but Kwa Jirani agents will be open. So parents can still conveniently pay for their children school fees at a Co-op kwa jirani agent.

4. MPESA PayBill 400222

Parents, Guardians and students can enjoy paying schools fees without having to go to a bank or school by using a mobile phone with an Mpesa enabled sim. School fees payment service is a Pay Bill option for paying school fees to participating schools only.

The process of paying school fees using Co-operative Bank Pay Bill number is 400222:

• From your phone menu, go to the M-PESA Menu and select Pay Bill.
• Enter Co-op bank’s pay bill number 400222 on the business number field
• Enter the school code on the account number field followed by # then the student’s school admission number.
• Enter the amount to be paid for school fees,
• Enter your secret M-PESA pin, and confirm the transaction.