Co-operative Bank

Co-operative Bank has posted a profit of Ksh 3.6 billion in the first three months of the year. This has also seen the Bank’s shareholders grow their wealth by 12.7 % within the same period.

The Gideon Muriuki led bank has attributed the growth to its strong digital channels and a 12.5 per cent growth in operating income catapulted by activities of vibrant Sacco movement in the country.

Most Saccos paid dividends to members during the quarter under review.

The fourth largest Bank in the country has successfully moved almost 90 per cent of all customer transactions to alternative delivery channels and expanded 24-hour contact centre, mobile banking, 584 ATMs, internet, and over 16,700 Co-op Kwa Jirani banking agents through its multi-channel strategy.

The lender’s MCo-opCash Mobile Wallet played a pivotal role in the growth of non-funded income with 5.6 Million customers registered and loans worth over Sh16 billion disbursed during the quarter.

The Group’s gross profit stood at Sh5.1 billion with operating income rising to Sh12.5 billion compared to Sh11.1 billion in the corresponding quarter last year.

Total non-interest income increased by 19 per cent to Sh5 billion compared to Sh4.2 billion.

The lender’s operating expense, however, grew 20.6 per cent to Sh7.3 billion compared to Sh6 billion on account of higher loan provision and staff expenses.

‘’The Group notes the strong performance in the first quarter of this year, and continues to pay close attention to the enormous challenge posed by Covid-19 with a view to sustaining full and uninterrupted business operations in the days ahead,’’ Coop Bank Group managing director Gideon Muriuki said.

He added that the group has noted the historically unique operating environment occasioned by the pandemic, which has brought about unprecedented economic and social disruption throughout the world.

‘’In this regard, we continue to leverage our digital channels while ensuring that all branch outlets remain open to offer service, with due regard to the health and safety of both customers and bank teams,’’ Muriuki said.

In March, the Central Bank of Kenya approved the Group’s plan to acquire 100 per cent of Jamii Bora Bank Ltd whose total assets sit at Sh12.5 billion.

This could see Coop Bank close its asset gap with third-placed NCBA, which on Wednesday reported asset growth to Sh509.6 billion in a quarter, ended March 31, 2020.

Coop Bank Group’s total assets grew by 10.5 per cent to Sh470.4 billion in the quarter under review compared to Sh425.7 billion the same period last year.

Co-operative Bank of Kenya has introduced new payment system for utility bills for those in the diaspora.

Kenyans in the diaspora can now comfortably pay utility bills back at home in Kenya via Co-op Bank’s new internet banking.

The bills that can be paid easily by those in the diaspora include KPLC, Pay TV, Water bills among others.

“Customer satisfaction is at the heart of all our innovations. We are giving our customers, a consistent experience across all our platforms, be it on mobile, tablet or web,” Co-op Bank says.

This means that Kenyans who are in countries that are currently under lockdown due to COVID-19, can easily pay bills for those at home comfortably.

For those who have already registered for the bank’s new internet banking system, they need to just log in and proceed to do the transaction/payments.

For the new members, they can register here.

In most parts of the country, businesses of all kinds, especially the small and medium-sized enterprises, have borne the brunt of the effects of COVID-19.

Liquidity has dried up, employees have either lost jobs or their salaries have been slashed, and entrepreneurs have either curtailed, or closed their businesses altogether – albeit temporarily.

Running a business during these troubling and stressful times can be challenging without the financial backbone to sail through.

While this is an unprecedented situation, it is important to ensure that businesses revert to their former state before the coronavirus crisis began. In a rapid-response effort to help businesses struggling with the effects of COVID-19, the Co-operative Bank of Kenya is offering support through an e-commerce solution that would enable businesses to receive card payments online.

Do you need to urgently send money to a loved one? Deposit the cash safely into their local bank account via PesaLink accessible on MCo-OpCash. Log on to the app or dial *667#. #GoDigitalBanking #WeAreYou pic.twitter.com/Tev14KMC0l

— Co-op Bank Kenya (@Coopbankenya) May 8, 2020

Business owners with cashless solutions for customers would find this e-commerce solution handy, which is why Co-op Bank has invested heavily in this and other cashless solutions so you and your customers can enjoy several advantages.

For your customers, there is the convenience and safety of transacting at any time from any location in the world, using multiple card types, and multiple currencies including KSh, USD, GBP and Euro.

As a business owner, you would get quick flow of payments straight into your bank account while enjoying outstanding real-time processing speeds with average authorization response times usually less than two seconds.

It also offers unparalleled processing scalability and security, seamless integration options, real-time reporting, and support for additional fraud prevention solutions that ensure your money is secure in the account.

Enjoy an improved banking experience for your business with our new Co-op Online platform. You can make RTGS, EFT and Swift payments to suppliers and do much more using your internet enabled device. Log on here https://t.co/7fAX42vA7Z. #GoDigitalBanking #WeAreYou pic.twitter.com/zu76KSzzQL

— Co-op Bank Kenya (@Coopbankenya) May 5, 2020

As a merchant, you can also receive payments from card holders from other banks, not just from Co-op bank card holders.

The bank has gone further to offer several other cashless solutions for merchants such as:

• Lipa na M-pesa till number: Co-op bank will give you a till number so that your customers can deposit money directly into your Co-op bank account.

• Lipa Na M-pesa paybill number: Using the paybill number 400200, your customers can send money straight into your Co-op bank account.

• MCo-op Cash: This is a mobile banking app that Co-op bank customers can use to transfer money from their accounts into the merchants account. They can also use the USSD *667# to do the same.

• POS/PDQ terminals: These ensure your customers do not handle paper money. Instead, they can use their cards to make payments, and the money will go straight into your business’ Co-op bank account. Keeping companies solvent is key to limiting economic damage while saving jobs.

If you are a business owner (merchant), and you would like to know more about the e-commerce solution or the other cashless options available for your business, get in touch with the Co-op Bank team for more information and assistance with any of these channels.