Co-op Bank is pleased to announce signing of an IFC loan amounting to US$ 60million (Kshs.5.1 Billion). The loan has a tenure of 7 years and is to support the growing borrowing client base in US$ mainly targeting the Small and Medium Enterprises (SME).

IFC Director for East and Southern Africa Mr. Oumar Seydi (left) presents the signed loan agreement to Dr. Gideon Muriuki CEO and Group Managing Director of Co-operative Bank of Kenya, as Aida Kimemia Country Manager, IFC (centre) looks on.

The Bank had also recently signed a Euro.70 million (Kshs.7.5 Billion) fund from EIB to support Micro Finance and Small Medium Enterprises.


The bank has continued to grow its Balance Sheet and sustain its profitability in the last years through an aggressive growth of the customer base to over 3.2 million account holders with incredible growth in non-funded income streams.  The bank is optimistic of even bigger growth with this funding.


In the third quarter ended 30th September 2012, the bank reported a remarkable Profit before Tax of Kshs.7.49 billion compared to Kshs.5.65 billion recorded for the same period in 2011, a commendable growth of 33%.


The good performance was achieved despite the difficult macroeconomic environment mainly through growth in non-funded income/transaction based fees and commissions from a sustained growth in the customers numbers to over 3.2 million account holders and with also an expanded Branch and Agency banking network, and aggressive cost rationalization.


Key financial highlights include:-


–                  Total customer deposits increased to Kshs.156.8 billion compared to Kshs.137.7 billion in September 2011, an impressive growth of Kshs.19 billion representing 13.9% growth.

–                  The loan book (net) increased by 11.3% to Kshs.118.4 billion from Kshs.106.4 billion in September 2011 mainly supported by our diversified new product lines and a competitive pricing mechanism.

–                  Our shareholders funds grew by 48% from Kshs.19.6 billion to Kshs.28.9 billion; through a sustained strategy of profit retention; this offers a solid base to support continued expansion of the bank.

–                  Total assets increased to Kshs.197.7 billion compared to Kshs.167.5 billion registered in the same period in 2011.

–                  Net Interest income increased by 33.7% to Kshs.11.77 billion compared to Kshs.8.81 billion recorded in September 2011.

–                  Non-funded income increased to Kshs.5.85 billion compared to Kshs.5.30 billion in 2011 thus a 10.3% growth mainly supported by fees and commissions (notably ATM commissions, agency banking,  personal and business banking commissions, M-banking, forex income and letters of credit).

The bank continued offering a Universal Banking model, with a wide range of services which includes; Co-operatives Banking, Corporate / Commercial Banking, Treasury, SME Banking, Micro Credit, Mortgage, Asset Financing and now Banc-assurance. The bank has therefore widened the income streams as hereunder;-

  • Our customer base increased by 39% to over 3.2 million customers from 2.3 million in September 2011. This milestone achievement was realized through a continued concerted effort by all staff to bring accounts in the Bank and cross sell other bank products.


  • In line with the new constitution and the county Government structure, we grew our branch network to 107 branches with also over 4,000 active ‘Co-op Kwa Jirani’ Agents and targeting to close the year with over 5,000, the agency banking service, has greatly contributed to the non-funded income streams.


  • Our ATM network is now accessible in 475 service points and over 35 Auto Banking Centres with deposit taking capabilities thus availing customers’ 24 hours banking services.


  • We have deepened our outreach through provision of wholesale financial services to over 500 Sacco FOSA outlets; that reach out to millions of unbanked Kenyans in the rural areas. Through this model the bank has currently issued over 516,000 Sacco link cards.


  • Through our enhanced mobile banking platform, the M- Banking, we have increased our active client base to almost 1 million customers.



  • Our strengthened capacity in Corporate & Institutional Banking contributed immensely to our performance increasing our forex income to over Kshs.977 million.

  • With our shareholding in Co-operative Insurance Company (CIC) at 26% our partnership to provide banc-assurance services through all our outlets has continued to gain momentum.


Cost Rationalization


We continued with our strategy of managing costs focusing mainly on staff rationalization which saw the redeployment of staff to the newly opened branches. Other cost areas are being consistently reviewed and monitored to ensure no cost overruns. Despite the significant growth and expansion in terms of branch network and “Co-op Kwa Jirani Agents”, operating costs increased only by 20% compared to a similar period in 2011.


Regional expansion

The Co-operative Bank of Southern Sudan is now a reality with the joint venture agreement with the Government of South Sudan having been signed on basis of a 51:49 shareholding structure. We expect to open the first branch early next year.




The bank has sustained tremendous grow over the years and will continue to grow and expand in line with its strategic plans.


Thank you for your continued support over the years and May God richly bless you.



Dr. Gideon Muriuki – MBS

Group Managing Director & CEO

3rd December 2012

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