Co-operative Bank of Kenya has recorded a 5.2 percent growth in net earnings to KSh23.2 billion in the financial year ended December 2023 compared to KSh 22 billion at the end of 2022.
- The lender’s pre-tax profit grew 10% to KSh 32.4 billion in 2023 compared to KSh 29.4 billion in 2022.
- Co-op Bank of Kenya’s balance sheet grew by 10.5% from KSh 607.2 billion in 2022 to KSh 671.1 billion in 2023.
- Net loans and advances to customers grew by 10.3% from KSh 339.4 billion in 2022 to KSh 374.2 billion in 2023.
Customer deposits grew to KSh 451.6 billion in 2023 from KSh 423.8 billion in 2022, an increase of 6.6%. External funds from development partners stood at KSh 67.3 billion in 2023 from KSh 48.1 billion in 2022. Provision for loan defaults fell 30.8 percent to Sh6 billion, while other operating expenses reduced by 16 percent to Sh12.2 billion, more than absorbing the rise in staff costs.
Net interest income in the review period was flat at Sh45.23 billion compared with Sh45.52 billion posted in the preceding similar period. However, non-interest income grew three percent to Sh26.46 billion taking operating income to Sh71.69 billion from Sh71.25 billion.
Coop Bank Group has a total of 194 branches, with four operational in South Sudan. The lender plans to open 15 additional branches in 2024 with one already operational in Nairobi’s Imaara Mall on Mombasa Road and another in Ugunja, Siaya County.
The Lender’s Expenses
Co-op Bank cut its operating expenses by six percent to Sh39.67 billion from Sh42.24 billion on reduced provisioning for loan losses and a drop in other operating expenses. Staff costs increased to Sh16.69 billion from Sh14.78 billion on salary increase as well as the hiring of 536 new employees after the lender increased its branch network by eight to hit 194. The lender is planning to close 2024 with an additional 15 branches, which means its costs will rise significantly in 2024.
Kingdom Bank, which is 90 percent owned by Co-op Bank, saw its net profit retreat to Sh655 million from Sh930 million due to a higher tax liability. Pre-tax earnings had grown 32 percent to Sh1.1 billion. Co-op Consultancy & Bancassurance Intermediary Limited posted a pre-tax profit of Sh877.1 million while Co-operative Bank of South Sudan returned a pre-tax profit of Sh291.3 million. Co-op Trust Investment Services Limited contributed Sh226 million in pre-tax profit as the subsidiary’s funds under management closed the period at Sh218.4 billion.
Co-op Bank of Kenya has recommended a dividend payout amounting to KSh 8.8 billion at the rate of KSh 1.50 per share.
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