Cooperative Bank of Kenya has registered Kshs. 13.0 billion in profit after tax for the first half of the year 2024. This represents a 7% rise compared to Kshs. 12.1 billion posted in the first half of 2023.
The substantial rise in the Bank’s profit was mainly attributed to the surge in operating income and excellent efficiency gains.
In addition, the bank reported a strong balance sheet resilience as total assets surged by 7.8% to Kshs. 716.9 billion from Kshs. 664.9 billion. Customer deposits rose by 9.5% to Kshs. 507.4 billion from Kshs. 463.9 billion while net loans and advances rose by 2.8% to 375.6 billion from Kshs. 365.4 billion in 2024. The bank’s total operating income and total non-interest income rose by 10.9% and 11.2%, respectively.
Co-op Bank’s subsidiaries including Kingdom Bank Limited, Co-op Trust Investment Services Ltd, and Bancassurance Intermediary Ltd reported positive returns. The South Sudan subsidiary, however, reported Kshs. 252.4 million in monetary loss due to hyperinflation accounting.
“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%,” reads a statement published on its website.
Mobile wallet, Mco-op Cash contributed significantly to the bank’s non-funded income streams. According to the report, Kshs. 36.4 billion in loans disbursed through the mobile wallet.
The strong financial performance comes amid the Co-op’s recent wins on the continental and global level. On Monday, the bank was added to the MSCI Frontier Markets Index following the August Index review.
Also, Global Finance named Co-op Bank as the best bank in the country due to its outstanding growth driven by its solid digital footprint, and wide network of agents.
