Co-op Bank Group has posted a 9.5 per cent net profit in the first nine months of the year driven by increased deposits.
The lender aligned to co-operative Saccos reported a net income of Sh19.2 billion up from Sh18.4 billion in the corresponding quarter last year, a day after Equity Bank posted Sh45 billion in profit.
The lender’s gross earnings for the quarter hit Sh26.8 billion, 8.5% per cent growth compared to Sh24.7 billion recorded in Q32023.
In a statement, the Group said the strong performance is in line with its strategic focus on sustainable growth, resilience, and agility delivering a competitive return on equity of 21.3 per cent, riding on the ‘Soaring Eagle’ Transformation Agenda.
The results cemented the bank’s position as the third biggest in Eastern Africa after KCB and Equity Bank, with total assets growing 13.5 per cent to Sh750.8 billion compared to Sh661.3 billion in the same period last year.
Net loans and advances grew to Sh381.3 billion from Sh378.1 billion in 2023.Customer deposits grew to Sh514.0 billion, an 18.7 per cent increase from Sh432.8 billion.
Coop Bank Group massively cut on external funds from development partners to Sh58 billion compared to Sh65.6 billion in 2023, a clear indication of financial stability.
Shareholders’ funds have grown to Sh131.8 billion, a 22 per cent increase from Sh108.1 billion in 2023 driven by the strong growth in retained earnings of Sh 16.3 billion.
Total operating income grew by 10.8 per cent from Sh53.4 billion to Sh59.2 billion. Total non-interest income on the other hand grew by 8.2 per cent from Sh20.6 billion to Sh22.3 billion.
Net interest income grew by 12.3 per cent from Sh32.8 billion to Sh36.9 billion. Total operating expenses grew by 12.7 per cent from Sh29 billion to Sh32.7 billion.
The Group reported excellent efficiency gains from the various initiatives to record a Costto-Income Ratio of 45.8 per cent in Q32024, from 59 per cent in FY2014 when it began the growth and efficiency journey.
“The bank continues to leverage the new core banking system to support the Group’s digital synergy. The system will further enhance service excellence and provide innovative and advanced banking solutions,” managing director and CEO Gideon Muriuki said.
Through its digital channel strategy, the bank has successfully moved over 93 per cent of all customer transactions to alternative delivery channels including mobile, internet banking and Co-op kwa Jirani agents.
Mco-op cash mobile wallet continues to drive substantial non-funded income streams with Sh55.7 Billion in loans disbursed in Q3 2024, averaging Sh 6.2 billion per month.
Over 231,200 customers have taken up the MSME packages rolled out in 2018, and 64,100 have been trained on business management skills.
Year-to-date, the lender has disbursed Sh 11 billion to MSMEs through its mobile e-credit solution, with MSMEs making up 15.9 per cent of our total bank’s loan book.
Co-op Bancassurance Intermediary Ltd posted a profit before tax of Sh 824.3 million in Q3 2024, riding on strong penetration of the Bancassurance business.
Co-operative Bank of
South Sudan, a joint venture with the
government made a profit before tax
of Sh34.7 million.
