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Co-op Trust Investment Services (Co-op Trust), the wealth management arm of Kenya’s Co-operative Bank Ltd. (Co-op Bank), a leading East African financial institution led by Chairman Gideon Muriuki, achieved record assets under management (AUM) in a milestone for the Kenyan financial sector.
Co-op Bank said in a recent statement that Co-op Trust’s AUM rose 11.15 percent to Ksh218.38 billion ($1.7 billion) for the fiscal year ended December 2023. The increase from Ksh196.47 billion ($1.47 billion) a year earlier underscores the subsidiary’s strong performance and adept financial market navigation.
Co-op Trust assets soar as investor confidence grows
According to Co-op Bank’s latest annual report, Co-op Trust managed Ksh218.38 billion ($1.7 billion) worth of securities, generating an income of Ksh392.05 million ($2.93 million). Despite incurring expenses of Ksh209.06 million ($1.56 million), the surge in assets signifies rising investor confidence in Co-op Trust’s expertise, further bolstered by Co-operative Bank’s well-established brand reputation.
Commenting on the impressive growth, a spokesperson for Co-op Bank highlighted the momentum gained through diversification into a broader range of financial services. These include advisory services, bancassurance, cross-border payment solutions, wealth management solutions, and fintech partnerships. This strategic expansion aligns with the bank’s commitment to enhancing its value proposition and catering to evolving customer needs.
Co-op Trust’s journey exemplifies sustained growth and value creation. The company’s assets have quadrupled since 2014, rising from Ksh52.5 billion ($392.4 million) to Ksh218.38 billion ($1.7 billion) in 2023. This translates to a compounded annual growth rate (CAGR) of 15.34 percent over the past decade. The substantial increase in annual income further reinforces the subsidiary’s dedication to delivering tangible results and maximizing value for its stakeholders.
Co-op Bank bolsters market position in Kenya
Co-op Bank, a leading Kenyan financial institution, has steadily cemented its market share through subsidiaries like Co-op Trust Investment Services Limited. The group’s focus on exceptional customer service, alongside its expansion into wealth management, remains key to retaining existing clients and attracting new ones.
Gideon Muriuki, a driving force behind Co-operative Bank’s success, holds a significant two-percent stake in the parent group, underscoring his commitment to the institution’s long-term growth trajectory.
By prioritizing customer experience and strengthening its value proposition, Co-op Bank aims to solidify its position as a top financial player in Kenya’s dynamic banking sector, ensuring continued growth and customer satisfaction.
