NAIROBI: Cost cutting measures among them managerial job cuts drove up Cooperative Bank Group’s nine month net profit to September by 36.6 per cent to Sh8.62 billion from Sh6.31 billion in a similar period last year.
Group managing director Gideon Muriuki said the cost cutting measures under the “soraing eagle” transformation project coupled with profitable operations in the South Sudan subsidiary yielded positive results.
“The “soaring eagle” critical focus was on cost optimisation, improvement in operating efficiencies and innovative customer delivery platforms,” he told an investor briefing in Nairobi.
“The South Sudan subsidiary is currently operating three branches in Juba and four collection centers. It has made a profit before tax of Sh246.8 million for the first nine months of the year,” he said.
Muriuki said the job cuts in December 2014 released over 160 staff, mainly in management cadre and reduced the other staff numbers to 3,661 from 4,128. The bank’s operating expenses stood at Sh14.6 billion in September from Sh14.4 billion in the same period last year.
Over the same period, total operating income grew by 13.4 per cent to Sh26.63 billion from Sh23.48 billion, while the loan book increased to Sh212.36 billion from 175.97 billion. This supported a Sh16 per cent increase in interest income to Sh17.38 billion from Sh15.04 billion.
In the review period, deposits increased to Sh257.46 billion from Sh206.64 billion and the shareholders funds also increased to Sh49.54 billion from Sh41.84 billion. “The bank has substantially grown the balance sheet with total assets at over Sh332.9 billion, supported by a growing customer base now standing at over 5.7 million account holders,” Muriuki said.
