The Cooperative Bank Group has reported a net profit of Sh14.1 billion, 8.4 percent higher than the Sh13 billion recorded for the same period last year.
The third biggest lender in the country in terms of asset value attributed the growth to the Group’s strategic focus on sustainable growth, resilience, and agility, riding on the ‘Soaring Eagle’ Transformation Agenda set a decade ago.
The group’s gross earnings for the period under review rose by 8.3 per cent to Sh19.7 billion from Sh18.2 billion, with total assets rising by 13.2 per cent to Sh811.9 billion, less than Sh200 billion to become a Sh1 trillion rich financial institution.
Return on equity, a gauge of a corporation's profitability and how efficiently it generates those profits, rose to 19.9 per cent during the period under review.
The higher the ROE, the more efficient a company's management is at generating income and growth from its equity financing.
Operating income grew by 10.8 per cent to Sh43.5 billion, boosted by higher net interest income that rose by 23.4 per cent.
The bank defied harsh economic times characterized by shrinking disposable income and a volatile operating environment stemming from both local and international pressures to increase deposits by 7.9 per cent to Sh547.7 billion, while net loans and advances increased by 4.2 per cent to Sh391.3 billion.
Operating expenses rose 13. per cent, with the cost-to-income ratio standing at 44.9 per cent, a significant improvement from 59 per cent back in 2014 when the lender began the growth and efficiency journey.
Shareholders’ funds grew 23.4 per cent to Sh156.3 billion, boosted by retained earnings of Sh18.4 billion.
The Group’s digital channels continued to offer unmatched convenience to customers, with 90 per cent of transactions by number conducted through non-branch channels. This is supported by a robust omni-channel platform (web, mobile, USSD), 622 ATMs, CDMs, and 16,000+ Co-op kwa Jirani agents.
For instance, the M-Co-op Cash mobile wallet disbursed Sh36.4 billion in loans year-to-date, of which Sh5.7 billion was to MSMEs.
Co-op Bank Group continued to demonstrate its commitment to supporting smaller businesses, with the MSME loan portfolio representing 17.3 per cent of the bank’s portfolio, with 249,319 customers benefiting from tailored packages and 68,800 from training.
This is made easier due to a national network of 619 FOSA outlets that continues extending financial services to remote areas and supporting the 15 million-member co-operative movement.
The Group’s subsidiaries posted impressive results during the period, with Co-op Trust Investment Services Ltd delivering a gross profit of Sh360.8 million, an increase of 152.8 per cent, with funds under management hitting Sh461.7 billion, one of the largest fund managers in the country.
Co-op Bancassurance Intermediary earned a gross profit of Sh90.8 million while the bank’s unit in South Sudan posted a restated profit of Sh56.9 million after accounting for hyperinflation.
Kingdom Bank generated a gross profit of Sh491.1 million while Kingdom Securities earned a total profit of Sh63.2 million.
Co-operative Bank Group managing director and CEO, Gideon Muriuki, told investors that the bank remains steadfast in advancing its strategic priorities, firmly grounded in resilience and growth across diverse economic sectors.
“We take pride in a universal banking model that balances comprehensive service offerings with operational agility. A robust digital presence that ensures seamless accessibility, supported by an industry-leading omni-channel platform.’’ Muriuki said.
He added that the lender has an extensive physical footprint comprising a countrywide branch network, ATMs and agency outlets, fortifying reach across all regions of the country.
The Group’s branch network expanded to 212 outlets, with 15 new branches opened across Kenya.
Kingdom Bank and Co-op Bank of South Sudan added new branches in Machakos and Wau, hence a total of 23 branches and 5 branches, respectively.
Staff strength increased to 5,850, creating 450 new jobs from 2023.
