The Cooperative Bank of Kenya has recorded its highest-ever profit for the 2024 financial year closing at Ksh34.8 billion.
This performance is an impressive 7.5 per cent improvement from the 2023 financial year when it recorded Ksh32.4 billion in profit.
After tax, this amounts to a profit of Ksh25.5 billion in the 2024 financial year and Ksh23.2 in 2023, a 9.8 per cent increase.
In a statement dated March 20, the Group Managing Director and Chief Executive Officer (CEO) Gideon Muriuki attributed the steady growth to the bank's alignment with the ‘Soaring Eagle’ Transformation agenda.
“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility, riding on the ‘Soaring Eagle’ Transformation Agenda,” part of the statement read.
The growth further led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 19.7 per cent.
The Board of Directors has thus recommended a dividend of Ksh1.50 per share, which will be considered by the regulators and shareholders before it is approved.
The next Annual General Meeting will be held virtually on May 16.
Other key performance highlights recorded in the last financial year include growth to Ksh743.2 billion of the group’s total assets, a 10.7 per cent growth from the previous year’s Ksh671.1 billion.
Customer deposits grew to Ksh506.1 billion, and shareholders’ funds grew to Ksh145.4 billion. Net loans and advances recorded were Ksh373.7 billion as compared to Ksh374.2 Billion in 2023.
External funds from development partners were Ksh5.4 billion compared to 2023’s Kshs.67.3 billion.
However, the total operating income, total non-interest income, net interest income, and total operating expenses all increase by 12.5 per cent, 10.1 per cent, 13.9 per cent, and 17.7 per cent respectively.
"The Group reports excellent efficiency gains from the various initiatives to record a Cost-to-Income Ratio of 47.2 per cent in FY2024, from 59 per cent in FY2014 when we began our growth and efficiency journey," the statement read.
The year also saw the bank grow its digital footprint most notably by successfully moving over 92 per cent of all customer transactions to alternative delivery channels, a 24-hour contact centre, 617 ATMs & Cash Deposit Machines (CDMs), mobile & internet banking and over 16,000 networks of Co-op kwa Jirani agents.
The Mco-op Cash Mobile wallet saw Kshs 76.7 billion in loans disbursed in the financial year, an average of Ksh6.39 Billion per month.