Cooperative Bank of Kenya Plc has disclosed its financial performance for the fiscal year 2023, demonstrating resilience and consistent growth amidst challenging economic conditions.
The bank’s FY’2023 results signify a commendable trajectory, characterized by key indicators illustrating its steadfast dedication to delivering value to stakeholders.
In FY’2023, the bank reported a 5.2% increase in Profit After Tax (PAT), reaching KES 23.2 billion, compared to KES 22.0 billion in FY’2022. This growth underscores the bank’s adept navigation of market dynamics, contributing to sustainable profitability.
Despite a slight 0.6% decrease in Net Interest Income (NII) to KES 45.2 billion, the bank observed a notable 2.8% increase in Non-Funded Income (NFI) to KES 26.5 billion. This balanced performance across interest and non-interest income streams reflects the bank’s diversified revenue sources.
Furthermore, total operating expenses declined by 6.1% to KES 39.7 billion in FY’2023, attributed to prudent cost management strategies. Notably, there was a significant decrease in loan loss provision by 30.8% and other operating expenses by 9.6%, enhancing the bank’s operational efficiency.
The bank’s balance sheet experienced robust expansion, with total assets increasing by 10.5% to KES 671.1 billion. This growth was primarily driven by a 10.3% increase in net loans and advances, indicating sustained support to various economic sectors through lending activities.
Additionally, Cooperative Bank of Kenya Plc’s holdings in Kenya government securities recorded a notable 9.1% increase to KES 189.0 billion in FY’2023, reflecting its role in supporting government initiatives. Moreover, customer deposits rose by 6.6% to KES 451.6 billion, highlighting strong deposit mobilization efforts and customer confidence.
In light of these achievements, the Directors of Cooperative Bank of Kenya Plc have recommended a final dividend of KES 1.5 per share for FY’2023. This recommendation translates to a dividend yield of 10.9% and a dividend payout ratio of 38.1%, demonstrating the bank’s commitment to rewarding shareholders.
