Home » Kenyan banker Gideon Muriuki’s Co-op Bank posts record earnings, as profits exceed $130 million

Kenyan banker Gideon Muriuki’s Co-op Bank posts record earnings, as profits exceed $130 million

by Feyisayo Ajayi
Gideon Muriuki

Co-operative Bank Group (Co-op Bank), a Nairobi-based financial services group led by Kenyan banking magnate Gideon Muriuki, is on track to deliver yet another impressive set of financial results this year, with profit exceeding Ksh16 billion ($130 million) at the end of the first nine months of its 2022 fiscal year.

According to figures in the group’s recently published financial results, profit at the end of the first nine months of its 2022 fiscal year rose by 47 percent from Ksh11.6 billion ($95.6 million) a year earlier to Ksh17 billion ($140 billion), owing to increases in both interest and non-interest income.

Non-interest income, which includes fees and commissions on loans and currency trading, climbed by 28.2 percent to Ksh20.1 billion ($164.8 million) during the period under review, while interest income increased by 10.5 percent to Ksh43.7 billion ($358.2 million) due to lending growth.

The group also revealed that its customer deposits increased by 2.7 percent to Ksh432 billion ($3.54 billion), contributing to an increase in interest expenses of 7.2 percent to Ksh11.6 billion ($95.1 million), while its loan book increased by 9.4 percent to Ksh335.1 billion ($2.75 billion), while investments in government debt securities decreased by 5.6 percent to Ksh182.3 billion ($1.5 billion).

As a result of the strong financial results, the group’s total assets increased by more than 5% to Ksh622.1 billion ($5.1 billion), up from Ksh592.9 billion ($4.86 billion) in the same period last year, while shareholder funds rose by more than 6.22 percent to Ksh100.9 billion ($827.1 million).

Muriuki, Co-op Bank’s CEO, said in a statement issued during trading hours on Fri., Nov. 18, that the bank’s outstanding performance is consistent with the group’s strategic focus on sustainable growth, resilience, and agility.

He also stated that all of the group’s subsidiaries, including the South Sudan operation, were profitable during the review period and that the strong performance provides shareholders with a competitive return on equity of 23 percent.

Co-op Bank is one of the largest financial organizations in East Africa. Kingdom Securities Limited, Co-op Trust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and the Co-operative Bank of South Sudan are among its subsidiaries.

Muriuki, who was instrumental in the bank’s expansion, owns a two-percent stake in the leading financial services group that serves as the primary banker for Kenya’s SACCOs.

Earlier this year, the renowned businessman earned a dividend of Ksh102.53 million ($882,400) from his stake in the Nairobi-based financial services organization after the lender reported a 53 percent increase in earnings in 2021.

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