The Co-operative Bank of Kenya reported a profit before tax of Ksh18.2 billion for the first half of 2024, reflecting a 10.7% increase from the Ksh16.4 billion recorded during the same period in 2023. After accounting for taxes, the profit stood at Ksh13 billion, up from Ksh12.1 billion in 2023.
According to the bank’s management, this robust performance aligns with their strategic priorities of pursuing sustainable growth, enhancing resilience, and maintaining agility, resulting in a return on equity of 22.1%.
Group Managing Director and CEO, Dr Gideon Muriuki said Co-operative Bank continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors.
“This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint, and the unique synergies in the over 15-million-member co-operative movement that is the largest in Africa,” says Dr Muriuki.
Key Performance Highlights
- Total Assets grew to Ksh716.9 billion, a 7.8% growth from Ksh664.9 Billion in the same period last year.
- Net loans and advances grew to Ksh375.6 Billion, a 2.8% growth from Ksh365.4 billion in 2023.
- Customer deposits grew to Ksh507.4 Billion, a 9.4% increase from Ksh463.9 billion.
- External funds from development partners were Ksh50.2 Billion compared to Ksh59.4 billion in 2023.
- Shareholders’ funds have grown to Ksh126.7 billion, a 17% increase from Ksh108.3 billion in 2023 driven by the strong growth in retained earnings of Ksh15.1 billion.
Meanwhile, operating income grew by 10.9% from Ksh35.4 billion to Ksh39.2 billion, non-interest income grew by 11.2% from Ksh13.8 billion to Ksh15.4 billion, while net interest income grew by 10.7% from Ksh21.5 billion to Ksh23.9 billion. Total operating expenses grew by 11.1% from Ksh19.1 billion to Ksh21.3 billion.
“The group reports excellent efficiency gains from the various initiatives to record a cost-to-income ratio of 46.6% in the first half of 2024 from 59% in 2014 when it began it started its growth & efficiency,” Dr Muriuki said.
Co-op bank Group Subsidiaries
Co-op Bancassurance Intermediary Ltd posted a profit before tax of Ksh682.7 million in the first-half of 2024, lifted by strong penetration of the bancassurance business.
Co-operative Bank of South Sudan, which is a unique partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%), made a profit before tax of Ksh264.3 million during the period under review. This performance, however, translated to a monetary loss of Ksh252.4 million attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudan Pound.
Co-op Trust Investment Services Ltd contributed Ksh142.7 million profit before tax in the half first of 2024 compared to Ksh106.8 million in the same period last year, a commendable 33.7% growth. The Subsidiary has funds under management of Ksh231.3 billion.
Kingdom Bank Limited, a niche MSME bank, contributed a gross profit of Ksh635.5 million in the period to June 2024, a remarkable growth of 21.8% from Ksh521.9 million in 2023.
