Co-operative Bank of Kenya announced a net profit of Ksh19.2 billion in the third quarter of 2024 compared to Ksh18.4 billion reported in the same period in 2023. The growth represented a 4.4 per cent increase.
The NSE-listed bank, in its quarterly report released on Thursday, November 14, 2024, realised a profit before tax of Ksh26.8 billion for the third quarter, 8.5 per cent growth compared to Ksh24.7 billion recorded in a similar period in 2023. The performance is attributed to sustainable growth and a strong digital footprint in the country.
Total Assets peaked at Ksh750.8 billion from Ksh661.3 billion, an increase of 13.5 per cent growth compared to the same period in 2023. Similarly, net loans and advances grew to Ksh381.3 billion from Ksh378.1 billion.
In the same breadth, customer deposits topped Ksh514.0 billion, marking an 18.7 per cent increase from Kshs432.8 billion recorded in a similar period.
External funds from development partners stood at Ksh58.0 billion compared to Ksh65.6 billion in 2023. At the same time, shareholders' funds grew to Ksh131.8 billion, marking a 22 per cent increase from Ksh108.1 billion.
The surge in shareholders’ funds was chiefly driven by strong growth in retained earnings of Ksh16.3 billion.
In the same vein, total operating income grew by 10.8 per cent from Ksh53.4 billion to Ksh59.2 billion. Similarly, total non-interest income grew by 8.2 per cent from Ksh20.6 billion to Kshs22.3 billion while net interest income increased by 12.3 per cent from Ksh32.8 billion to Ksh36.9 billion.
Mco-op Cash Mobile wallet continues to drive substantial non-funded income streams with Ksh55.7 billion in loans disbursed in the third quarter averaging Ksh6.2 billion per month.
Since the rollout of the Micro, Small, and Medium-sized Enterprises (MSMEs) packages in 2018, 231,200 customers have taken up and 64,100 have been trained on business management skills. By the third quarter, the bank had disbursed Ksh11 billion to MSMEs through its mobile e-credit solution. MSMEs make up 15.9 per cent of our total Loan Book.
The Bank’s branch network has expanded to a total of 204 outlets (5 in South Sudan) with 15 additional outlets slated to be opened this year, with 8 already opened.
Co-op Bank’s sub-diaries continued to boost the overall performance of the bank with over 15 million-member co-operative movement, making it the largest in Africa.
Co-op Bancassurance Intermediary Ltd posted a profit before tax of Ksh824.3 million riding on strong penetration of the Bancassurance business. Co-operative Bank of South Sudan which is a unique joint venture (JV) partnership with the Government of South Sudan (Co-op Bank owns 51 per cent and GOSS 49 per cent) 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 the currency devaluation of the South Sudan Pound.
Co-op Trust Investment Services Ltd contributed Ksh254.9 million in profit before tax compared to Ksh154.5 million in the previous year, a commendable 65 per cent 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 Ksh929.2 million a remarkable growth of 18.1 per cent from Ksh786.6 million reported in the third quarter of 2023.
The Bank continues to leverage the new core banking system (the latest version of Finacle from Infosys, one of the best-rated platforms globally), to support the Group's digital synergy. Already, Co-op Bank has moved over 93 per cent of all customer transactions to alternative delivery channels including a 24-hour contact centre, 603 ATMs and Cash Deposit Machines (CDMs), mobile & internet banking and over 16,000 network of Co-op kwa Jirani agents.