The Cooperative Bank of Kenya posted a 4.4% increase in net profit for the nine months ending September 2024, with earnings reaching KSh 19.2 billion.
This growth, from KSh 18.39 billion in the same period last year, was driven by a 12.3% rise in net interest income to KSh 36.87 billion and an 8.2% increase in non-interest income to KSh 22.28 billion.
Co-op Bank’s Managing Director, Gideon Muriuki, attributed the performance to the bank’s focus on sustainable growth, resilience, and agility under its “Soaring Eagle Transformation” initiative, yielding a 21.3% return on equity.
The bank managed this growth despite a 12.7% rise in operating expenses to KSh 32.68 billion, largely due to higher loan loss provisions and staff costs. Loan loss provisions increased by a third to KSh 5.6 billion, while staff expenses rose 10.8% to KSh 13.5 billion, reflecting salary adjustments and additional hires to support Co-op’s expanding branch network.
Branch Expansion and Staff Growth
The bank has expanded its branch network by 11 new branches, bringing its total to 204 outlets, up from 193 last year. Co-op Bank now employs 5,617 people, an increase of 368 staff members over the year. New locations include branches in Imara Mall (Nairobi), Ugunja (Siaya), Luanda (Vihiga), and a third Kingdom Bank branch in Meru.
Subsidiary Performance and Bancassurance Growth
Kingdom Bank, a Co-op Bank subsidiary, saw its net profit drop by 23% to KSh 63 million due to increased tax obligations, despite a pre-tax profit rise of 14.5% to KSh 897.7 million. The Co-op Consultancy and Bancassurance Intermediary reported a net profit increase to KSh 824.3 million, supported by expanding bancassurance operations.
Co-op Bank South Sudan also performed strongly, posting a net profit of KSh 434.7 million, up from KSh 246.9 million, excluding inflation adjustments. Meanwhile, Co-op Trust Investment Services recorded KSh 254.9 million in pre-tax profit, with funds under management growing by 52.8% to KSh 219.9 billion.
Assets, Deposits, and Efficiency
Co-op Bank’s total assets grew by 13.5% to KSh 750.8 billion, while customer deposits rose 18.7% to KSh 514 billion, supported by a 22% increase in shareholders’ funds to KSh 131.8 billion. The bank’s cost-to-income ratio improved slightly to 45.8%, reflecting efficiency gains in operations.
These results underscore Co-op Bank’s strategic focus on sustainable growth and innovation within Kenya’s competitive banking sector.
