Table of Contents
Key Points
- Co-op Bank's net profit increased by 4.4% to Ksh19.2 billion ($148 million) in the nine months ending September 2024.
- The bank expanded its branch network and workforce, adding eight new branches and 317 employees in the first half of 2024.
- Subsidiaries, including Kingdom Bank and Co-op Consultancy, contributed positively to the group's overall performance.
Co-operative Bank of Kenya (Co-op Bank) posted a 4.4 percent rise in net profit, reaching Ksh19.2 billion ($148 million) for the nine months ending September 2024. This performance reflects the bank’s strategic initiatives, with increases in both interest and non-interest income driving growth despite higher operating expenses.
During this period, total operating income rose by 8.7 percent to Ksh55.3 billion ($427 million), compared to Ksh50.9 billion ($393 million) a year ago. Net interest income grew by 6.2 percent to Ksh37.2 billion ($287 million), while non-interest income surged 14.1 percent to Ksh18.1 billion ($140 million).
The bank’s total assets increased by 7.5 percent to Ksh716.9 billion ($5.5 billion), with customer deposits up 9.4 percent to Ksh507.4 billion ($3.92 billion). However, operating expenses grew by 11 percent to Ksh21.3 billion ($165 million), driven by higher loan loss provisions and staff costs.
Expansion boosts customer reach
Under CEO Gideon Muriuki, Co-op Bank expanded its operations by adding eight new branches and growing its workforce by 317 employees to 5,426 during the first half of 2024. The aim is to enhance service delivery and strengthen the bank’s presence across Kenya.
Subsidiaries also contributed to overall performance. Kingdom Bank, 90 percent owned by Co-op Bank, recorded a net profit of Ksh444.9 million ($3.4 million) despite higher taxes. Other subsidiaries, such as Co-op Consultancy & Bancassurance Intermediary Limited and Co-op Trust Investment Services Limited, delivered robust pre-tax profits, further diversifying income streams.
Promising outlook and strategic leadership
The bank’s return on equity of 22.1 percent underscores its efficient capital use and profitability. Inclusion in the MSCI Frontier Markets Index has also raised its profile among global investors.
CEO Gideon Muriuki, who owns a two-percent stake in the bank, continues to drive its strategic growth, focusing on resilience and innovation. Earlier in 2024, Co-op Bank reported a seven-percent rise in half-year profit to Ksh12.99 billion ($100 million), reflecting a consistent upward trajectory.
With a solid foundation and clear growth strategies, Co-op Bank remains well-positioned to maintain its competitive edge in Kenya’s banking sector.
