Co-op Bank has reported Kshs 13 billion in net profit during the first six months of this year, representing a 7.4% growth, powered by interest income.
Net interest income increased 10.7% to Kshs 23.9 billion while total non-interest income grew by 11.2% to Kshs. 15.4 billion. This is after net loans and advances grew 2.8% to Kshs 375.6 billion.
Key performance highlights:
- Total operating income grew by 10.9% from Kshs. 35.4 Billion to Kshs. 39.2 Billion.
- On the other hand, total operating expenses grew by 11.1% to Kshs 21.3 billion.
- Total Assets grew to Kshs.716.9 Billion, a 7.8% growth from Kshs 664.9 Billion in the same period last year.
- Customer deposits grew to Kshs. 507.4 Billion, a 9.4% increase from Kshs. 463.9 Billion.
- External funds from development partners were Kshs. 50.2 Billion compared to Kshs.59.4 Billion in 2023.
- Shareholders’ funds have grown to Kshs. 126.7 Billion, a 17% increase from Kshs. 108.3 Billion in 2023 driven by the strong growth in retained earnings of Kshs. 15.1Billion.
Co-op Bank Group Managing Director Gideon Muriuki says the lender continues to leverage the new core banking system (latest version of Finacle from Infosys, one of the best-rated platforms globally), to support the Group’s digital synergy.
“Through our digital channel strategy, the Bank has successfully moved over 93% of all customer transactions to alternative delivery channels, a 24-hour contact centre, 604 ATMs & Cash Deposit Machines (CDMs), mobile & internet banking and over 17,000 network of Co-op kwa Jirani agents,” says Muriuki.
He says the lender’s 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.
“Mco-op Cash Mobile wallet continues to drive substantial non-funded income streams with Kshs 36.4 Billion in loans disbursed in 1H2024, averaging Kshs. 6.1 Billion per month,” says Muriuki.
In terms of branch network, Co-op Bank now has a total of 199 outlets (including four in South Sudan).
Muriuki says the bank plans to open 15 more outlets this year. Of this, two branches have already been opened comprising once along Mombasa Road in Nairobi and another one in Ugunja in Siaya County.
In addition, Co-operative Bank of South Sudan opened its fifth branch in Wau, supporting business growth and financial inclusion in South Sudan.