Co-op Bank Group has reported Kshs 6.58 billion in net profit during the first three months of this year, representing a 7.7% growth that was driven by interest income and lower Cost-to-Income Ratio.
Total operating income increased 5.1% to Kshs 18.8 billion.
Net interest income grew by 8.6% to Kshs 11.7 billion while total non-interest income remained stable at Kshs 7.1 billion.
The lender’s total operating income grew 5.1% to Kshs 18.8 billion.
On the other hand, total operating expenses increased marginally from Kshs 9.8 billion to Kshs. 9.9 billion.
The Co-op Bank Group reported excellent efficiency gains from the various initiatives to record a Cost-to-Income Ratio of 44.1% from 59% in FY2014 when the firm began its Growth and Efficiency journey.
Other performance highlights:
- Total Assets grew to Kshs.714.7 Billion, a 13.2% growth from Kshs 631.1 Billion in the same period last year.
- Net loans and advances grew to Kshs. 378.1 Billion, a 5% growth from Kshs.360.1 Billion in 2023.
- Customer deposits grew to Kshs. 481.8 Billion, a 14.8% increase from Kshs. 419.8 Billion.
- External funds from development partners grew to Kshs. 60.1 Billion from Kshs.48.4 Billion in 2023.
- Shareholders’ funds have grown to Kshs. 127.1 Billion, a 12.9% increase from Kshs. 112.6 Billion in 2023.
Co-op Bank Group Managing Director Gideon Muriuki says the bank has moved at least 93% of all customer transactions to alternative delivery channels, comprising a 24-hour contact centre, 605 ATMs & Cash Deposit Machines (CDMs), mobile & internet banking and over 16,000 network of Co-op kwa Jirani agents.
“Mco-op Cash Mobile wallet continues to drive substantial non-funded income streams with Kshs 18.1 Billion in loans disbursed in Q12024, averaging Kshs. 6.0 Billion per month,” said Muriuki.
Co-op Bank has expanded its branch network to 195 outlets, including four branches in South Sudan.
Muriuki says the bank plans to open 15 branches this year. Of this, two have already been opened in Imaara Mall in Nairobi and Ugunja in Siaya.
“Our Subsidiary, Kingdom Bank, opened a new Branch in Gikomba, aligning perfectly with the Bank’s strategic vision to serve markets where Kingdom Bank has niche expertise notably MSMEs,” he said.