Co-op Bank reports $100.1-million profit, joins MSCI Frontier Markets Index

Oluwatosin Racheal Alabi -

Key Points

  • Co-op Bank reports $100.1 million (KSh13 billion) profit in the first half of 2024, a 7 percent increase year-on-year.
  • Morgan Stanley's MSCI listing positions Co-op Bank for increased global investor visibility.
  • Expansion plans include 15 new branches across Kenya, focusing on financial inclusion.

The Co-operative Bank of Kenya (Co-op Bank), led by CEO Gideon Muriuki, reported a 7 percent increase in net profit for the first half of 2024, reaching $100.1 million (KSh13 billion). This stellar performance was driven by a 10.9 percent rise in total operating income, which stood at $301 million (KSh39.2 billion).

Non-interest income rose significantly, up 11.2 percent to $118.6 million (KSh15.4 billion), while net interest income increased by 10.7 percent, hitting $184.1 million (KSh23.9 billion).

Muriuki attributed the bank's growth to its strategic focus on sustainable growth, resilience, and adaptability. The bank posted a strong Return on Equity (ROE) of 22.1 percent, solidifying its position as a leader in Kenya’s banking industry.

Morgan Stanley listing boosts global profile

Co-op Bank’s inclusion in the Morgan Stanley Capital International (MSCI) Frontier Markets Index marked a milestone for the institution. The MSCI index tracks large- and mid-cap companies in emerging markets, providing critical insights for international investors.

This listing enhances Co-op Bank’s global visibility, positioning it among Kenya’s most successful financial institutions.

Beyond global recognition, the bank is focused on national growth, with plans to open 15 new branches by the end of 2024. Recent additions include locations at Imaara Mall in Nairobi and Ugunja in Siaya County.

Kingdom Bank, Co-op Bank’s SME-focused subsidiary, also reported significant growth, with a profit before tax of $489,335 (KSh635.5 million), up 21.8 percent from the previous year.

A transformative leadership journey

Founded in 1965 to meet the credit needs of Kenya’s co-operative societies, Co-op Bank faced financial difficulties in the early 2000s. In 2001, Gideon Muriuki was appointed Managing Director during a challenging period when the bank had lost KSh2.3 billion.

Under Muriuki’s leadership, the bank underwent a dramatic transformation, achieving a record profit before tax of KSh22.6 billion in 2021. The bank now serves over 10 million customers, operates 199 branches, and has expanded its reach to South Sudan.

Muriuki’s leadership has been instrumental in driving innovation, efficiency, and sustainability at the bank, earning him recognition as one of Kenya’s most influential business figures.

Co-op Bank’s future of steady growth

With strong earnings, international visibility through the MSCI listing, and a culture of robust leadership, Co-op Bank is well-positioned for continued expansion in Kenya and beyond. The bank’s commitment to innovation, sustainability, and financial productivity ensures its relevance in the ever-evolving financial services sector.

As Co-op Bank grows its footprint and embraces global opportunities, it cements its status as a transformative force in Kenya’s banking industry.