Co-operative Bank Group has announced a 10.7% increase in profit before tax for the first half of 2024, reaching KES 18.2 billion compared to KES 16.4 billion in the same period last year. The bank’s profit after tax rose to KES 13 billion, up from KES 12.1 billion in 2023.
The Nairobi-based lender attributed its strong performance to sustainable growth strategies and improved efficiency. Total assets grew by 7.8% to KES 716.9 billion, while customer deposits increased by 9.4% to KES 507.4 billion.
“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility delivering a Return on Equity of 22.1%,” the bank stated in its financial report.
Co-op Bank’s net loans and advances saw a modest increase of 2.8% to KES 375.6 billion. The bank’s shareholders’ funds experienced significant growth, rising 17% to KES 126.7 billion, driven by a KES 15.1 billion increase in retained earnings.
The bank’s digital transformation efforts have yielded positive results, with 93% of customer transactions now conducted through alternative delivery channels. These include a 24-hour contact centre, 604 ATMs and Cash Deposit Machines, mobile and internet banking, and a network of over 17,000 Co-op Kwa Jirani agents.
Dr. Gideon Muriuki, Group Managing Director and CEO, highlighted the bank’s digital strategy: “Our Omni-channel platform continues to offer users accessibility and enhanced experience. The platform interfaces online banking through personal computers, mobile phones and USSD availing our services to all customers through their preferred channel yet retain the same user experience from wherever they are.”
The bank’s mobile wallet, Mco-op Cash, has become a significant driver of non-funded income, disbursing KES 36.4 billion in loans during the first half of 2024, averaging KES 6.1 billion per month.
Co-op Bank has also made strides in supporting Micro, Small, and Medium Enterprises (MSMEs). Over 223,000 customers have adopted MSME packages rolled out in 2018, with 63,500 receiving training in business management skills. In the first half of 2024, the bank disbursed KES 7.5 billion to MSMEs through its Mobile E-Credit solution.
The bank’s subsidiaries have also contributed to its overall performance. Co-op Bancassurance Intermediary Ltd posted a profit before tax of KES 682.7 million, while Kingdom Bank Limited, a niche MSME bank, contributed KES 635.5 million, marking a 21.8% growth from the previous year.
Co-op Bank’s expansion efforts continue, with plans to open 15 additional outlets this year. The bank currently operates 199 branches, including four in South Sudan. Its subsidiary, Kingdom Bank, recently opened its 22nd branch in Meru County, focusing on supporting the local agricultural community and business development.
The bank’s commitment to sustainability and social responsibility remains strong. Through the Co-op Bank Foundation, the group has provided scholarships to 11,043 gifted but needy students from all regions of Kenya since its inception.
