Myth Busted: Kenyan Banks Make Most Profit Lending Individuals Not Government. Co-op Results

kennedy0000 · Aug 17, 2018

Geza Ulole and his numerous accounts like reminding us that the reason Kenyan banks make much more profit compared to their own, is because they lend to the government.
That if they were to stop lending to the government, they would be on the same level with Tanzanian banks.

The painful truth is that Tanzanian economy is just sh*t. That's why all companies (banks included) report profits that would make them a laughing stock in Kenya.

Co-op bank yesterday released their half year results, which shows an after tax profit of Sh7.14 billion. That's a growth of 7.5%.
Remember, this is just 6 month profit, which already would make it the most profitable bank in Tanzania if it were full year profit.
Co-op is number 3 in Kenya.

The total interest revenue was 20.8 billion.
Of this, Sh16.13 billion was from lending to households and business.
and Sh4.54 billion was from lending to government.

Income in summary:
Private lending - Sh16.3 billion (78.2%)
Government lending - Sh 4.54 billion ( 21.8%)

The other banks that have released half year results:

KCB - Sh 12.1 billion profit
Equity - Sh 11 billion profit

So, myth busted. Even if we were to remove government lending, Co-op bank would still be the most profitable bank in Tanzania by far.
And that is not to say that Tanzanian banks don't lend to the government or buy bonds too.

https://www.businessdailyafrica.com/corporate/companies/4003102-4714616-4nlwr3z/index.html

kirk git · Aug 17, 2018

Banks play hardball in push against rate cap

Commercial banks say they will continue lending to the government at the expense of businesses and individuals if legislators make good their threat to shoot down the proposed removal of interest caps, bosses of two leading lenders have warned.

kennedy0000 · Aug 17, 2018

kirk git said:
Banks play hardball in push against rate cap

Commercial banks say they will continue lending to the government at the expense of businesses and individuals if legislators make good their threat to shoot down the proposed removal of interest caps, bosses of two leading lenders have warned.

And what does this have to do with banks making most of their money from private loans and not government?
Even with the rate cap, 80% of their income is from private lending. Meaning before the rate cap it must have been 95%.

Mkikuyu- Akili timamu · Aug 17, 2018

kennedy0000 said:
And what does this have to do with banks making most of their money from private loans and not government?
Even with the rate cap, 80% of their income is from private lending. Meaning before the rate cap it must have been 95%.

Coop is a bank owned by Members of cooperatives.Its actually a cooperative though it later on got a commercial bank license. Compare apples with apples not with oranges. Coop will not lend to you unless you have shares or you are a memeber of various coops that bank with CoopBank.

kennedy0000 · Aug 17, 2018

Mkikuyu- Akili timamu said:
Coop is a bank owned by Members of cooperatives.Its actually a cooperative though it later on got a commercial bank license. Compare apples with apples not with oranges. Coop will not lend to you unless you have shares or you are a memeber of various coops that bank with CoopBank.

You are a big fool Geza.
I have an account with Co-op bank and have even received a loan from them.
I'm not a member of any cooperative and never have been. I just have an account with them.

Co-op bank is ran like any other bank. From mortgage, to personal loans to business loans to asset finance.

And I don't know who is supposed to be the apple or orange in this

Mkikuyu- Akili timamu · Aug 17, 2018

kennedy0000 said:
You are a big fool Geza.
I have an account with Co-op bank and have even received a loan from them.
I'm not a member of any cooperative and never have been. I just have an account with them.

Co-op bank is ran like any other bank. From mortgage, to personal loans to business loans to asset finance.

And I don't know who is supposed to be the apple or orange in this

You lie. You cannot get a personal loan if you have no shares/member of cooeratives, but you can get a construction or mortage because it has security attached.
If you read the cooperatives act of kenya you will know the difference between a coop and a commercial bank..Coops exist for the benefit of its members, commercial banks are in business purely for profit and thats why they would rather buy treasury bonds than lend to private individuals which is risky.
You are very shallow in this field..Do you even know why Coop fought with CBK to get a commercial bank license?

Msapere · Aug 17, 2018

Mkikuyu- Akili timamu said:
Coop is a bank owned by Members of cooperatives.Its actually a cooperative though it later on got a commercial bank license. Compare apples with apples not with oranges. Coop will not lend to you unless you have shares or you are a memeber of various coops that bank with CoopBank.

Talks a fool..coop lends even via mobile apps or mobile USSD..WITH ZERO STRESS

Msapere · Aug 17, 2018

Mkikuyu- Akili timamu said:
You lie. You cannot get a personal loan if you have no shares/member of cooeratives, but you can get a construction or mortage because it has security attached.
If you read the cooperatives act of kenya you will know the difference between a coop and a commercial bank..Coops exist for the benefit of its members, commercial banks are in business purely for profit and thats why they would rather buy treasury bonds than lend to private individuals which is risky.
You are very shallow in this field..Do you even know why Coop fought with CBK to get a commercial bank license?[/Cooperatives are like Saccos but Coop Bank is a commercial bank.

Msapere · Aug 17, 2018

Mkikuyu- Akili timamu said:
You lie. You cannot get a personal loan if you have no shares/member of cooeratives, but you can get a construction or mortage because it has security attached.
If you read the cooperatives act of kenya you will know the difference between a coop and a commercial bank..Coops exist for the benefit of its members, commercial banks are in business purely for profit and thats why they would rather buy treasury bonds than lend to private individuals which is risky.
You are very shallow in this field..Do you even know why Coop fought with CBK to get a commercial bank license?

Cooperatives are like Saccos but Coop Bank is a commercial bank.

Mkikuyu- Akili timamu · Aug 17, 2018

Msapere said:
Talks a fool..coop lends even via mobile apps or mobile USSD..WITH ZERO STRESS

They now have a commercial banking licence if you are not aware. But their primary objective is to lend to members and not Gvt like other banks. I challange you to open an account(not a coopcash mobile a/c) and ask for a loan and you will be shocked that you must have shares or a FOSA account with their numerous cooperatives

Mkikuyu- Akili timamu · Aug 17, 2018

Msapere said:
Cooperatives are like Saccos but Coop Bank is a commercial bank.

See, you dont even know the difference btwn a sacco, a cooperative and a bank..Read the acts!

Msapere · Aug 17, 2018

Mkikuyu- Akili timamu said:
They now have a commercial banking licence if you are not aware. But their primary objective is to lend to members and not Gvt like other banks. I challange you to open an account(not a coopcash mobile a/c) and ask for a loan and you will be shocked that you must have shares or a FOSA account with their numerous cooperatives

I have done so several times even my salary is paid through coop and i ama not a member of any sacco

Msapere · Aug 17, 2018

Mkikuyu- Akili timamu said:
See, you dont even know the difference btwn a sacco, a cooperative and a bank..Read the acts!

cooperative is a commercial bank that started as a cooperative society (sacoo) but for now its a fully commercial bank..a sacoo is simply a cooperative society

Mkikuyu- Akili timamu · Aug 17, 2018

Msapere said:
I have done so several times even my salary is paid through coop and i ama not a member of any sacco

As I said, Coop is now a commercial bank, they have a license and you can get loan aganist a salary account and a very different rate from a member account.
What am talking about is the priority of lending...The piriority is to members unlike other. banks who prefer to lend to the ever broke GoK. Kenyan commercial banks know which part of their bread is buttered, and its the GoK (which is your taxpayer money)

Mkikuyu- Akili timamu · Aug 17, 2018

Msapere said:
cooperative is a commercial bank that started as a cooperative society (sacoo) but for now its a fully commercial bank..a sacoo is simply a cooperative society

You are ignorant and not qualified to speak on these issues

Msapere · Aug 17, 2018

Mkikuyu- Akili timamu said:
As I said, Coop is now a commercial bank, they have a license and you can get loan aganist a salary account and a very different rate from a member account.
What am talking about is the priority of lending...The piriority is to members unlike other. banks who prefer to lend to the ever broke GoK. Kenyan commercial banks know which part of their bread is buttered, and its the GoK (which is your taxpayer money)

Haha good you finally said its a commercial banks...the rest of your theories keep it to yourself

Msapere · Aug 17, 2018

Mkikuyu- Akili timamu said:
You are ignorant and not qualified to speak on these issues

u are simply a fool..Mr know everything..but a fool with no facts

Mkikuyu- Akili timamu · Aug 17, 2018

Banks play hardball in push against rate cap
THURSDAY, AUGUST 16, 2018 20:33
BY CONSTANT MUNDA
Commercial banks say they will continue lending to the government at the expense of businesses and individuals if legislators make good their threat to shoot down the proposed removal of interest caps, bosses of two leading lenders have warned.
Equity Bank EQTY • 51.00 ▲ 2.51% chief executive James Mwangi and his Barclays counterpart Jeremy Awori have argued that the one per cent cut in Central Bank of Kenya’s (CBK) benchmark rate has locked more firms and individuals out of the credit market.
Mr Mwangi reckons a focus in government lending will send shock waves among “optimistic” businesses whose financial needs may not be met by small-ticket loans advanced by micro-lenders including mobile lenders.
“What they will be doing is continue marginalising the Kenyans who cannot get bank loans and leave them to borrow from shylocks at about 30 per cent per month, telecoms at five per cent per week or from microfinance institutions that charge them up to 48 per cent,” he said yesterday.

Msapere · Aug 17, 2018

Mkikuyu- Akili timamu said:
Banks play hardball in push against rate cap
THURSDAY, AUGUST 16, 2018 20:33
BY CONSTANT MUNDA
Commercial banks say they will continue lending to the government at the expense of businesses and individuals if legislators make good their threat to shoot down the proposed removal of interest caps, bosses of two leading lenders have warned.
Equity Bank EQTY • 51.00 ▲ 2.51% chief executive James Mwangi and his Barclays counterpart Jeremy Awori have argued that the one per cent cut in Central Bank of Kenya’s (CBK) benchmark rate has locked more firms and individuals out of the credit market.
Mr Mwangi reckons a focus in government lending will send shock waves among “optimistic” businesses whose financial needs may not be met by small-ticket loans advanced by micro-lenders including mobile lenders.
“What they will be doing is continue marginalising the Kenyans who cannot get bank loans and leave them to borrow from shylocks at about 30 per cent per month, telecoms at five per cent per week or from microfinance institutions that charge them up to 48 per cent,” he said yesterday.

hope you have known the difference between coop bank and other Saccos aftera long research

WAKUNJOMBE · Aug 17, 2018

so what?
What did you get? stupid

Au upo kwenye mgao?

Myth Busted: Kenyan Banks Make Most Profit Lending Individuals Not Government. Co-op Results

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