(Nairobi) – Co-operative Bank has announced a 9.5% growth in its net profit for the first nine months of 2024, reaching KSh 19.2 billion, up from KSh 18.4 billion in the same period last year. This growth is largely attributed to a boost in customer deposits. The result comes just a day after Equity Bank reported a KSh 45 billion profit.
For the third quarter of 2024, Co-operative Bank’s gross earnings amounted to KSh 26.8 billion, reflecting an 8.5% increase from KSh 24.7 billion in the same quarter of 2023. The bank has attributed this solid performance to its strategic focus on sustainable growth, resilience, and agility, which has enabled it to achieve a competitive return on equity of 21.3%. This performance aligns with the bank’s ‘Soaring Eagle’ Transformation Agenda.
The results further solidify Co-operative Bank’s position as the third-largest bank in East Africa, following KCB and Equity Bank. The bank’s total assets grew by 13.5%, reaching KSh 750.8 billion, up from KSh 661.3 billion in 2023. Net loans and advances increased slightly to KSh 381.3 billion from KSh 378.1 billion. Customer deposits surged by 18.7%, rising to KSh 514.0 billion from KSh 432.8 billion in 2023.
In line with its strategic goals, Co-op Bank significantly reduced reliance on external funds from development partners, bringing it down to KSh 58 billion from KSh 65.6 billion in 2023. This reduction is seen as an indicator of the bank’s financial stability.
The bank’s shareholders’ funds grew by 22% to KSh 131.8 billion, up from KSh 108.1 billion, driven by strong growth in retained earnings of KSh 16.3 billion. The total operating income for the period increased by 10.8%, from KSh 53.4 billion to KSh 59.2 billion. Meanwhile, non-interest income saw a growth of 8.2%, increasing from KSh 20.6 billion to KSh 22.3 billion.
Net interest income also rose by 12.3%, from KSh 32.8 billion to KSh 36.9 billion. Operating expenses, however, increased by 12.7%, from KSh 29 billion to KSh 32.7 billion. Despite this, the bank reported improved efficiency, as evidenced by a reduction in its Cost-to-Income Ratio, which dropped to 45.8% from 59% in 2014, marking significant gains in cost management.
Co-operative Bank’s Managing Director and CEO, Gideon Muriuki, highlighted the role of the bank’s new core banking system in supporting its digital strategy. The system enhances service delivery and provides innovative banking solutions. Over 93% of the bank’s customer transactions are now processed through alternative channels such as mobile, internet banking, and Co-op kwa Jirani agents.
The bank’s mobile wallet, Mco-op Cash, continues to contribute substantially to non-funded income, with KSh 55.7 billion in loans disbursed in the third quarter of 2024. On average, KSh 6.2 billion is being disbursed per month. Since 2018, over 231,200 customers have enrolled in the bank’s MSME packages, with 64,100 having been trained in business management skills. To date, the bank has disbursed KSh 11 billion to MSMEs, which make up 15.9% of the total loan book.
In other business segments, Co-op Bancassurance Intermediary Ltd reported a pre-tax profit of KSh 824.3 million, benefiting from strong growth in its Bancassurance business. Co-operative Bank of South Sudan, a joint venture with the government, posted a pre-tax profit of KSh 34.7 million.
Key Financial Highlights
| Indicator | Q3 2024 | Q3 2023 | Growth (%) |
|---|---|---|---|
| Net Profit | KSh 19.2 billion | KSh 18.4 billion | 9.5% |
| Gross Earnings | KSh 26.8 billion | KSh 24.7 billion | 8.5% |
| Total Assets | KSh 750.8 billion | KSh 661.3 billion | 13.5% |
| Customer Deposits | KSh 514.0 billion | KSh 432.8 billion | 18.7% |
| Shareholders’ Funds | KSh 131.8 billion | KSh 108.1 billion | 22% |
| Net Interest Income | KSh 36.9 billion | KSh 32.8 billion | 12.3% |
| Operating Income | KSh 59.2 billion | KSh 53.4 billion | 10.8% |