Co-operative Bank of Kenya’s wealth management subsidiary grew its assets under management by 11.15 percent to a new record of Sh218.38 billion in the year ended December, a move that resulted in a substantial increase in fee income.
The subsidiary, Co-op Trust Investment Services Limited, had managed assets of Sh196.47 billion in the prior year. Part of the assets represent the wealth of Co-op Bank’s employees, with the Nairobi Securities Exchange-listed firm contributing hundreds of millions of shillings each year in its defined contribution staff retirement plan.
“The group, through Co-op Trust Investment Services Limited manages securities with a value of Sh218.38 billion (2022: Sh196.47 billion) on behalf of customers,” the bank’s major shareholder, Co-op Holdings Co-operative Society Limited, says in its latest annual report covering the performance of the lender and its subsidiaries.
“The total income for the period from fund management was Sh392.05 million (2022: Sh343.08 million), with total expenses amounting to Sh209.06 million (Sh2022: Sh182.SI million).”
The growth of the assets represents the increase in returns as well as new capital inflows, including pension contributions received from Co-op Bank for its employees.
These pension contributions rose to Sh970.7 million last year from Sh910.6 million in 2022, according to the Co-op Holdings report. “Under the terms of their appointment, Co-op Trust Investment Services Limited, a subsidiary of the bank, is responsible for the investment of funds,” Co-op Bank said of the pension fund management in its 2022 annual report.
