Co-operative Bank of Kenya has been ranked second emerging top in franchise ranking due to high efficiency levels as evidenced by a low Cost to Income ratio which came in at 58.1 per cent vs an industry average of 61.4 per cent.
According to the latest banking Q1 2020 report by Cytonn Investment themed “Deteriorating Asset Quality amid the COVID-19 Operating Environment”, said Co-op has continued implementation of “Soaring Eagle” transformation initiatives is expected to drive growth and increase efficiency.
“We expect the initiatives to culminate into improved revenue levels,”Cytton said.
Co-op bank’s profit before tax increased by 3.7% to 3.7 bn from Kshs 3.6 bn in Q1’2019. Profit after tax declined marginally by 0.3% to Kshs 3.59 bn Q1’2020, from Kshs 3.60 bn in Q1’2019 with the effective tax rate increasing to 29.9% from 29.6% in Q1’2019.
Bank’s total operating income increased by 12.5% to Kshs 12.5 bn in Q1’2019, from Kshs 11.1 in Q1’2019. This was due to a 19.0% increase in Non-Interest Income to Kshs 5.0 bn from Kshs 4.2 bn in Q1’2019, coupled with an 8.5% growth in Net Interest Income (NII) to Kshs 7.5 bn from Kshs 6.9 bn in Q1’2019.
