Co-operative Bank of Kenya has reported a Profit Before Tax of Ksh26.8 billion for third quarter of 2024, a commendable 8. 5% growth compared to Ksh24.7 billion recorded in the same period last year. Profit after tax grew to Ksh19.2 billion from Ksh18.4 billion reported in the third quarter of 2023.
The strong performance is in line with the bank’s strategic focus on sustainable growth, resilience, and agility, said Co-operative Bank Group Managing Director and CEO, Dr Dideon Muriuki. According to the Q3 financial results, Co-op Bank delivered a competitive Return on Equity of 21.3%, riding on the ‘Soaring Eagle’ Transformation Agenda.
The group reported “excellent efficiency gains” from the various initiatives to record a Cost-to-Income Ratio of 45.8% in Q32024, from 59% in FY2014 when it kicked off the growth and efficiency journey.
Key Performance highlights
Financial Position: Total Assets grew to 8 Billion, a 13.5% growth from Ksh661.3 Billion in the same period last year.Net loans and advances grew to 3 Billion from Ksh378. 1 Billion in 2023, while customer deposits grew to Ksh 0 Billion, an 18.7% increase from Ksh432.8 Billion.
External funds from development partners stand at Kshs58.0 Billion compared to 65.6 Billion in 2023. Shareholders’ funds have grown to Ksh131.8 Billion, a 22% increase from Ksh108. 1 Billion in 2023 driven by the strong growth in retained earnings of Ksh16.3 Billion.
Comprehensive Income:Total operating income grew by 8% from Ksh53.4 Billion to Ksh59.2 Billion. Total non-interest income grew by 2% from Ksh20.6 Billion to Ksh 22.3 Billion. Net interest income grew by 3% from Kshs 32.8 Billion to Kshs 36. 9 Billion. Total operating expenses grew by 12.7% from Kshs 0 Billion to Kshs. 32.7 Billion.
Strong Digital Footprint
The Bank continues to leverage the new core banking system (latest version of Finacle from Infosys, one of the best-rated platforms globally), to support the Group’s digital synergy. The system will further enhance service excellence and provide innovative and advanced banking solutions.
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“Through our digital channel strategy, the Bank has successfully moved over 93% of all customer transactions to alternative delivery channels, a 24-hour contact centre, 603 ATMs & Cash Deposit Machines (CDMs), mobile & internet banking and over 16,000 network of Co-op kwa Jirani agents,” says the bank’s CEO and MD, Dr Gideon Muriuki.
Subsidiaries
Co-op Bancassurance Intermediary Ltd posted a Profit Before Tax of Ksh824.3 million in Q3 2024, riding on strong penetration of bancassurance business.
Co-operative Bank of South Sudan that is a unique partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit Before Tax of Ksh434.7 Million . This performance, however, translated to a profit of Ksh33.8 Million attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudan Pound.
Co-op Trust Investment Services Ltd contributed Ksh254.9 Million Profit Before Tax in Q32024 compared to Ksh154.5 Million in Q3 2023, a commendable 65% growth. The Subsidiary has Funds Under Management currently at Ksh299.6 Billion.
Kingdom Bank Limited (a niche MSME Bank) contributed a Profit Before Tax of 929.2 Million in Q32024, a remarkable growth of 18.1% from Ksh786.6 Million reported in Q3 2023.
The Co-operative Bank Group 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-operativ.e movement that is the largest in Africa.
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