Co-op Bank Net Profit Jumps 5.2 Pc To Ksh23.2 Billion

Co-Op Bank has posted a Ksh23.2 billion profit for the full year ended December 2023, a 5.2 per cent jump compared to the Ksh22 billion it posted a year prior.

The lender has attributed the growth to increased income and a drop in operating costs for the trading period.

The strong performance, Co-op says, is in line with the Group’s strategic focus on sustainable growth, resilience and agility.

“The strong performance has led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 21.0 per cent,” said Co-op Bank Group Managing Director (MD) and Chief Executive Officer (CEO) Gideon Muriuki.

Total Assets for the review period grew 10.5 per cent to Ksh671.1 billion from Ksh607.2 billion in the same period last year.

Net loans and advances for the trading period grew to Ksh374.2 Billion, a 10.3 per cent jump from Ksh339.4 billion in 2022.

Customer deposits grew to Ksh 451.6 billion, a 6.6 per cent increase from Ksh423.8 billion.

Total operating income grew 0.6 per cent from Ksh71.3 billion in the previous year to Ksh71.7 billion.

Total non-interest income grew by 2.8% from Kshs 25.7 Billion to Kshs 26.5 billion.

Net interest income remained stable to stand at Ksh45.2 billion as compared to Ksh45.5 billion in 2022.

Total operating expenses for the review period decreased by 6.1 per cent from Ksh42.2 billion to Ksh39.7 billion, with a critical focus on Cost Management.

“The Group reports excellent efficiency gains from the various initiatives to record a Cost-to-Income Ratio of 47.0 per cent in FY2023 from 59 per cent in FY2014 when we began our Growth & Efficiency journey,” said Co-op bank MD.

The lender has plans to expand its network in the country with an additional 15 outlets this year.

The Board of Directors of the lender has recommended a dividend payment of Ksh8.8 billion, a payout of Ksh1.50 per share, subject to approval by the regulators and shareholders.

Read: Co-op Bank Named Best Bank In Kenya