Co-operative Bank of Kenya has announced a net profit of Ksh6.58 billion for the first quarter of 2024, marking a 7.7 per cent rise from Ksh6.11 billion recorded in the same period last year. The bank attributed this growth to significant strides in key sectors, particularly the performance of its online lending app, Mco-op Cash Mobile wallet.
The financial institution, in its quarterly report released on Thursday, revealed a Profit Before Tax of Ksh9.01 billion for Q1 2024, showcasing a 10.6 per cent increase compared to Ksh8.15 billion in the corresponding period of 2023.
A substantial surge in total assets was observed, with figures soaring to Ksh714.7 billion, reflecting a notable 13.2 per cent escalation from Ksh631.1 billion in Q1 2023. Loans and advances also experienced an upward trajectory, reaching Ksh378.1 billion from Ksh360.1 billion in the previous year, while customer deposits surged to Ksh481.8 billion, marking a 14.8 per cent upsurge from Ksh419.8 billion.
External funds from development partners saw a substantial increase to Ksh60.1 billion from Ksh48.4 billion in 2023, with shareholders' funds growing to Ksh127.1 billion, showcasing a robust 12.9 per cent escalation from Ksh112.6 billion in the previous year.
The bank's total operating income grew by 5.1 per cent to Ksh18.8 billion, with net interest income rising by 8.6 per cent to Ksh11.7 billion. Notably, Co-operative Bank of Kenya has been focusing on digital advancements, successfully migrating 93 per cent of all customer transactions to alternative delivery channels, including a 24-hour contact centre, ATMs, mobile and internet banking, and a vast network of Co-op kwa Jirani agents.
Mco-op Cash Mobile wallet played a pivotal role in driving non-funded income streams, disbursing loans amounting to Ksh18.1 billion in Q1 2024, averaging Ksh6.0 billion per month.
Moreover, the bank continued rolling out support for Micro, Small, and Medium-sized Enterprises (MSMEs), with over 214,000 customers benefiting from MSME packages rolled out in 2018, with another 60,850 reaping from business training offered by Co-op Bank.
Furthermore, Co-operative Bank of Kenya has expanded its outreach, ensuring over 15 million Sacco members can access banking services even in remote areas.
The stellar performance of Co-op Bank's subsidiaries significantly contributed to its overall success during the first quarter of 2024. Kingdom Bank, in which Co-op Bank holds a substantial 90 per cent ownership, demonstrated impressive growth with its net profit soaring by 33 per cent. The bank's net profit for the quarter ending March 2024 stood at Ksh341.7 million, a significant increase from the Ksh256.3 million recorded in a similar period last year.
Additionally, Co-op Consultancy & Bancassurance Intermediary Limited reported a robust pre-tax profit of Ksh305 million, underscoring the subsidiary's strong performance in facilitating bancassurance business.
Meanwhile, the Co-operative Bank of South Sudan returned a pre-tax profit of Ksh110 million. However, when adjusted for hyperinflation, this translated to a monetary loss of Ksh71.3 million. Despite the challenges posed by hyperinflation, the bank's operations in South Sudan continue to show resilience and profitability.
Co-op Trust Investment Services Limited also posted impressive financial results, with a pre-tax profit of Ksh75.5 million, marking a substantial 47.6 percent growth from the previous year. The subsidiary's funds under management reached Ksh227.2 billion, indicating a significant increase from Ksh194 billion at the end of March last year.
In a strategic move towards sustainability, the bank secured a long-term loan of USD 25 million from DEG, a subsidiary of KfW Group, dedicated to supporting women-owned or managed MSMEs. This initiative aligns with the bank's commitment to the global Sustainable Development Goals (SDGs).
With a wide and expanding branch network comprising 195 outlets, including four in South Sudan, the bank remains steadfast in its commitment to serving diverse customer segments.
Having added 497 new members to its workforce, the bank plans to add 15 additional outlets this year, further extending its reach and accessibility.