Co-operative Bank of Kenya has achieved a notable seven percent increase in net profit, reaching Sh12.99 billion for the half-year ended June 2024. This growth, up from Sh12.14 billion in the same period last year, is attributed to a substantial rise in both interest and non-interest income. Net interest income surged by 10.7 percent to Sh23.9 billion, while non-interest income climbed 11.2 percent to Sh15.4 billion.
The bank’s Managing Director, Gideon Muriuki, highlighted that this strong performance aligns with the group’s strategic focus on sustainable growth, resilience, and agility, delivering a return on equity of 22.1 percent. Despite the impressive profit growth, operating expenses increased by 11 percent to Sh21.3 billion due to higher provisioning for loan losses and increased staff costs, which rose by 14.8 percent to Sh9.1 billion.
During this period, Co-op Bank expanded its workforce by 317 employees, bringing the total number to 5,426. The bank also increased its branch network by opening eight new branches, including locations in Nairobi, Siaya, Vihiga, and Meru. The physical branches now total 199, with plans to open an additional 15 branches by the end of the year.
The bank’s asset base grew by 7.8 percent to Sh716.9 billion, and customer deposits increased by 9.4 percent, surpassing Sh500 billion for the first time. Kingdom Bank, a subsidiary 90 percent owned by Co-op Bank, saw a decline in net profit due to a higher tax liability, although pre-tax earnings grew by 21.8 percent.
Additionally, Co-op Consultancy & Bancassurance Intermediary Limited and Co-operative Bank of South Sudan reported strong pre-tax profits of Sh682.7 million and Sh264.3 million, respectively. Co-op Trust Investment Services Limited also contributed Sh142.7 million in pre-tax profit, with its funds under management growing by 17 percent.
In a significant development, Co-op Bank has been added to the Morgan Stanley Capital International (MSCI) frontier markets index, enhancing its visibility to global investors. This inclusion reflects the bank’s growing prominence in the financial sector. #Banking #FinancialGrowth #Investment #CoopBank #Kenya #BusinessExpansion
