Kenyan banker Gideon Muriuki leads Co-op Bank to record $170-million profit in 2023

Feyisayo Ajayi -

Co-operative Bank Group (Co-op Bank), a Nairobi-based financial services group led by Kenyan banking magnate Gideon Muriuki, has once again showcased its financial prowess, posting a staggering profit surpassing Ksh23 billion ($170 million) at the end of its 2023 fiscal year.

According to figures in the group’s recently published financial results, profit at the end of its fiscal year 2023 rose by 5.22 percent from Ksh22.04 billion ($165.97 million) a year earlier to Ksh23.19 billion ($174.69 million), owing to increased income and reduced operating costs.

Co-op Bank’s total assets jump 9.53 percent, shareholder funds rise 5.46 percent

Non-interest income, boosted by fees and commissions on loans and currency trading, climbed from Ksh61.75 billion ($464.95 million) to Ksh69.07 billion ($520.29 million) during the period. Meanwhile, interest income saw a modest uptick of 2.84 percent from Ksh25.73 billion ($193.77 million) to Ksh26.46 billion ($199.28 million) due to lending expansion.

Thanks to these robust financial results, the group’s total assets grew by 9.53 percent to Ksh671.13 billion ($5.05 billion), compared to Ksh607.2 billion ($4.57 billion) in the same period last year. Shareholder funds also saw a rise of 5.46 percent to Ksh113.56 billion ($855.17 million).

CEO Gideon Muiuki commented on the bank’s financial performance, noting, “The strong performance has led to a sustained increase in shareholder value as reflected in the competitive return on equity of 21 percent. The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors.”

Gideon Muriuki’s strategic leadership propels Co-op Bank Group to new heights

Co-op Bank, a major player in East Africa’s financial sector, boasts several subsidiaries including Kingdom Securities, Co-op Trust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and the Co-operative Bank of South Sudan.

Muriuki, who was instrumental in the bank’s expansion, owns a two-percent stake in the leading financial services group. This stake, which is now worth over $13 million, has cemented his position among the richest investors on the Nairobi Securities Exchange.

Thanks to strong financial performance, the board recommends a final dividend of Ksh1.5 ($0.0113) per share, totaling Ksh8.80 billion ($77.1 million) for the period ending Dec. 31, 2023. Shareholders can expect this dividend to be credited to their accounts starting June 10, 2024.