•The net profit is up from Sh16.5 billion reported in a similar period in 202.
•The group’s profit before tax grew to Sh29.4 billion in the year, up from Sh22.6 billion the previous year.
Co-op Bank has announced a Sh8.8 billion dividend payout to shareholders, driven by a strong performance for the financial year 2022.
The board has recommended a dividend of Sh1.50 per share, subject to approval by the regulators and shareholders.
This represents a 50 per cent enhancement on the Sh1.00 per share paid out last year.
The group’s full-year profit after tax grew by 33.3 per cent to Sh22 billion.
This is up from Sh16.5 billion reported in a similar period in 2021, as the lender continued to ride on its digital banking and growth strategy to deliver a strong performance.
Profit before tax grew to Sh29.4 billion in the year, up from Sh22.6 billion the previous year.
Managing director and CEO Gideon Muriuki, said the strong performance by the bank is in line with “the Group’s strategic focus on sustainable growth, resilience, and agility.”
The performance has led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 21.2 per cent.
The Group's loan book grew by 9.4 per cent, extending Sh339.4 billion in net loans and advances to customers, up from Sh310.2 billion in 2021.
Deposits hit Sh607.2 billion, up from Sh579.8 billion in the same period the previous year.
Total assets closed the year at Sh607.2 billion, a 4.7 per cent growth from Sh579.8 billion in the same period last year.
The Nairobi Securities Exchange (NSE) listed lender maintained sustained growth as operating income grew by 17.9 per cent from Sh60.4 billion, to Sh71.3 billion.
Total non-interest income grew by 32.7 per cent from Sh19.4 billion to Sh 25.7 billion.
Net interest income grew by 10.9 per cent from Sh41.0 billion to Sh 45.5 billion.
Total operating expenses equally went up by 10.9 per cent from Sh38.1 billion to Sh42.2 billion.
Credit management remains a key focus area, with the Group prudentially making provisions of Sh8.7 billion which has enhanced the bank’s Loan Loss Reserve/Coverage levels to 74 per cent , from 69 per cent in 2021, Muriuki noted in a statement on Thursday.
Over 170,000 customers have taken up the MSME packages that the lender rolled out in 2018, and 33,673 have been trained on business management skills.
Year to date, it has disbursed Sh25.4 billion to MSMEs through Mobile E-Credit solution, who remain a critical part of economic recovery post-covid, and contributing up to 16.9 per cent of Co-op’s loan book.