Despite the difficulties in its operating environment, Co-operative Bank Group, a Nairobi-based financial services group led by Kenyan multimillionaire Gideon Muriuki, reported a profit of Ksh5.84 billion ($103.54 million) at the end of the first quarter of 2022.
Profit for the three-month period ending March 31 increased by nearly 65.5 percent, from Ksh3.46 billion ($87.05 million) in the first quarter of 2021 to Ksh5.84 billion ($103.54 million) at the end of the first quarter of 2022, according to figures contained in the group’s Q1 filing, driven by lower loan-loss provisions and the group’s growth strategy.
Muriuki, Co-operative Bank Group’s CEO, commented on the group’s Q1 financial performance, stating: “The bank’s strong performance is in line with the group’s strategic focus on sustainable growth, resilience, and agility.”
According to Muriuki, credit management was a core area of focus during the period and, as such, the bank implemented a credit risk adaptation project supported by a global consulting firm.
The group’s assets increased to Ksh597 billion ($5.11 billion) from Ksh552.9 billion ($4.73 billion) in the same period last year, while shareholder funds increased by 10 percent to Ksh102.7 billion ($879.9 million) in 2021 from Ksh93.7 billion ($802.75 million).
Customer deposits increased to Ksh410.8 billion ($3.52 billion), up from Ksh393.8 billion ($3.37 billion), while net loans and advances increased to Ksh324.5 billion ($2.78 billion), a nine-percent increase from Ksh298.2 billion ($2.55 billion) in the same period last year.
The group’s investment in government securities increased to Ksh183.4 billion ($1.57 billion) during the period under review, up from Ksh166.2 billion ($1.42 billion) in 2021, as lenders continued to benefit from high returns from its operating segments.
Co-Op Bank Group is one of East Africa’s largest financial institutions. Kingdom Securities Limited, Co-optrust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and Co-operative Bank of South Sudan are among its subsidiaries.
Muriuki owns a two-percent stake in the leading financial services group, totaling 102,528,400 shares.
As of press time on May 29, shares in Co-Op Bank Group were trading at Ksh11.95 ($0.1023), up 4.37 percent from their opening price on the Nairobi Securities Exchange on May 27, giving the company a market capitalization of Ksh70.1 billion ($600.5 million).