News Column

Taxes Weigh in On Co-Op Bank H1 Net Profit

August 13, 2014

Kennedy Kangethe

The Co-operative Bank group has posted a net profit of Sh4.7 billion in the first half of 2014, which is similar to the figure registered for the same period 2013.

This is attributed to an increase in tax remitted this year (Sh2.04 billion) compared to Sh1.16 billion paid last year.

The group's profit before tax (PBT) grew by 15.2 percent to Sh6.76 billion from Sh5.87 billion posted same period last year.

The Chief Executive Officer Gideon Muriuki said total assets grew by 18.4 percent to Sh266.7 billion from Sh225.3 billion while the loan book surged 32. 7 percent from Sh124.9 billion recorded in June 2013 to Sh165.8 billion in June 2014.

Customer deposits also increased 14 percent to Sh203.3 billion while shareholders funds closed at Sh40.2 billion registering a 19 percent growth.

Non-funded income grew by 37.5 percent to Sh6.2 billion from Sh4.5 billion while net interest income grew by 21 percent to Sh9.9 billion from Sh8.9 billion. Foreign exchange commission grew by 37.5 percent to Sh921 million fromSh670 million while total operating expenses grew by 24 percent.

The bank has launched an advanced mobile wallet dubbed M-Co-opcash that enables both customers and non customers across all networks to open bank accounts and apply for loans from their mobile phones.

M-Co-opcash will also enable users to transfer funds across banks, micro finance institutions and mobile networks.

"The launch is in line with the bank's vision to continuously offer value added financial services as well as enable financial deepening especially to the un banked, the mobile wallet will be a significant boost to the bank's performance on non funded income which delivered a remarkable 37.8 percent growth in the first half of 2014," he said.

Upon registration the customer telephone number becomes the customer bank account number with transactions commencing immediately.

The bank plans to leverage on its 4.6 million direct customers in the M-Co-opcash product.

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Source: AllAfrica

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