Co-operative Bank of Kenya had reported a profit before tax of Ksh32.4 billion for full year 2023, a 10% growth compared to Ksh29.4 billion recorded in 2022. The results represent a profit after tax of Ksh23.2 billion compared to Ksh22 billion reported in 2022. This strong performance by Co-operative Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.
Meanwhile, growth in earnings has led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 21.0%. The Board of Directors has recommended a dividend payment of Kshs 8.8 Billion, being a payout of Ksh1.50 per share, subject to approval by the regulators and shareholders. The Annual General Meeting (virtual) will be held on Friday, 17th May 2024.
- Financial Position
- Total Assets grew to Kshs. 671.1 Billion, a 10.5% growth from Kshs 607.2 Billion in the same period last year.
- Net loans and advances grew to Kshs. 374.2 Billion, a 10.3% growth from Ksh339.4 Billion in 2022.
- Customer deposits grew to Kshs 451.6 Billion, a 6.6% increase from Ksh423.8 Billion.
- External funds from development partners stands at Kshs 67.3 Billion from Kshs.48.1 Billion in 2022.
- Shareholders’ funds have grown to Kshs. 113.6 Billion, a 5.5% increase from Ksh107.7 Billion in 2022.
- Comprehensive Income
- Total operating income grew by 0.6% from Kshs 71.3 Billion to Kshs 71.7 Billion.
- Total non-interest income grew by 2.8% from Kshs 25.7 Billion to Kshs 26.5 Billion.
- Net interest income remained stable to stand at Kshs 45.2 Billion as compared to Ksh45.5 Billion in 2022.
- Total operating expenses decreased by 6.1% from Kshs 42.2 Billion to Ksh39.7 Billion, with a critical focus on Cost Management
New Core Banking System goes Live
Co-op Bank in June 2023 successfully upgraded the core banking system to the latest version of Finacle from Infosys, one of the best-rated platforms globally, marking a critical milestone in the bank’s digitization journey to enhance service delivery and provide the most innovative and advanced banking solutions.
“In addition, the Co-operative Bank of South Sudan successfully went Live on the new Finacle system on 17th March 2024, concluding the full migration of the Group to the new system thereby enabling the Group’s digital synergy,” he said.
- Through our digital channel strategy, the Bank has successfully moved over 91% of all customer transactions to alternative delivery channels, a 24-hour contact centre, 599 ATMs & Cash Deposit Machines (CDMs), mobile & internet banking and over 17,000 network of Co-op kwa Jirani agents.
- The Omni-channel platform continues to offer users accessibility and enhanced experience. The platform interfaces online banking through personal computers, mobile phones and USSD availing our services to all customers through their preferred channel yet retain the same experience from wherever they are.
- Mco-op Cash Mobile wallet continues to drive substantial non-funded income streams with 5 Million customers registered and Kshs 75.3 Billion in loans disbursed in 2023, averaging Kshs. 6.3 Billion per month.
- Over 208,000 customers have taken up the MSME packages we rolled out in 2018, and 58,850 have been trained on business management skills. In 2023, we disbursed Kshs. 18.6 Billion to MSMEs through the Mobile E-Credit solution. MSMEs make up 15.8% of our total Loan Book.
- Its unique model of retail banking services avails access to cash for FOSA operations, enabling 484 FOSA outlets to support over 15 million Sacco members access banking services even in rural/remote areas.
A growing Team
Co-operative bank continues to invest in a competitive team set to serve at existing functions at the same time tap new growth opportunities across all areas of the business. Staff Numbers have grown from 4,864 as at the close of 2022 to 5,400 as at year 2023 close, creating job opportunities for over 530 young people.
Kingdom Bank Limited (a niche MSME Bank) contributed a Profit Before Tax of Ksh1.08 Billion in FY2023, a remarkable growth of 36.4% from Ksh792.6 Million reported in FY2022.
Co-op Bank Foundation, the Group’s social investment vehicle, continues to provide Scholarships to gifted but needy students from all regions of Kenya. The sponsorship includes fully paid secondary education, full fees for University education, Internships, and career openings for beneficiaries. The foundation is fully funded by the bank and has supported 10,264 students since the inception of the program.
Conclusion
The Co-operative Bank Group Managing Director and CEO Dr Gideon Muriuki says the bank continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors. This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint, and the unique synergies in the over 15-million-member co-operative movement that is the largest in Africa.
