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| The co oparative bank |
Co-op Bank is pleased to report a Profit Before Tax of KSh 9.01 billion for quarter one 2024, a commendable 10.6% growth compared to KSh 8.15 billion recorded in quarter one 2023. Co-op Bank records KSh 9.01 billion profit in quarter one 2024 This represents a profit after tax of KSh 6.58 billion compared to KSh 6.11 billion reported in 2023. The strong performance by the bank is in line with the group’s strategic focus on sustainable growth, resilience, and agility. Key Performance highlights: 1. Financial Position: The Group has registered strong growth as follows. Total assets grew to KSh 714.7 billion, a 13.2% growth from KSh 631.1 billion in the same period last year. Net loans and advances grew to KSh 378.1 billion, a 5% growth from KSh 360.1 billion in 2023. Customer deposits grew to KSh 481.8 billion, a 14.8% increase from KSh 419.8 billion. External funds from development partners grew to KSh 60.1 billion from KSh 48.4 billion in 2023. Shareholders’ funds have grown to KSh 127.1 billion, a 12.9% increase from KSh 112.6 billion in 2023. 2. Comprehensive Income Total operating income grew by 5.1% from KSh 17.9 billion to KSh 18.8 billion. Total non-interest income remained stable to stand at KSh 7.1 billion, similar to performance recorded a year ago. Net interest income grew by 8.6% from KSh 10.8 billion to KSh 11.7 billion in 2023. Total operating expenses increased marginally by 0.5% from KSh 9.8 billion to KSh 9.9 billion. 3. Cost Management The Group reports excellent efficiency gains from the various initiatives to record a Cost-to-Income Ratio of 44.1% in Q12024 from 59% in FY2014 when we began our growth and efficiency journey. 4. A Strong Digital Footprint A New Core Banking System, presenting opportunity for growth and enhanced efficiency The bank 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. The system will further enhance service excellence and provide innovative and advanced banking solutions. 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, 605 ATMs & Cash Deposit Machines (CDMs), mobile & internet banking and over 16,000 network of Co-op kwa Jiraní agents. Our 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 00/experience from wherever they are. Mco-op Cash Mobile wallet continues to drive substantial non-funded income streams with KSh 18.1 billion in loans disbursed in Q12024, averaging Kshs. 6.0 Billion per month. Over 214,000 customers have taken up the MSME packages we rolled out in 2018, and 60,850 have been trained on business management skills. In Q12024, we disbursed KSh 3.9 billion to MSMEs through our Mobile E-Credit solution. MSMEs make up 15.6% of our total Loan Book. Our unique model of retail banking services avails access to cash for FOSA operations, enabling 484 FOSA outlets to support over 15 million Sacco members access banking services even in rural/remote areas. 5. Wide and Expanding Branch Network The Branch network has expanded to a total of 195 outlets (four in South Sudan). We have planned 15 additional outlets this year, with two at Imaara Mall on Mombasa Road-Nairobi and Ugunja in Siaya already opened. 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. 6. A Growing Team The Bank continues to invest in a competitive team set to serve at existing functions at the same time tap new growth opportunities across all areas of the business. Staff numbers have grown from 4,864 as at the close of 2022 to 5,361, creating job opportunities for over 497 young people. 7. Subsidiaries Co-op Bancassurance Intermediary Ltd posted a Profit Before Tax of Kshs 305 Million in Q12024, riding on strong penetration of Bancassurance business. Co-operative Bank of South Sudan that is a unique joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit Before Tax of Kshs 128.5 Million in Q12024 compared to a loss of KSh 71.4 million in Q12023. Co-op Trust Investment Services Ltd contributed KSh 75.5 million Profit Before Tax in Q12024 compared to KSh 51.2 million in Q12023, a 47.6% growth. The Subsidiary has Funds Under Management of KSh 227.2 billion. Kingdom Bank Limited (a niche MSME bank) contributed a Profit Before Tax of KSh 350.3 million in Q12024, a remarkable growth of 33.9% from KSh 261.5 million reported in Q12023. 8. Long Term Financing: Women-owned/managed MSMEs The bank has secured a long-term loan of USD 25 million from DEG a subsidiary of KfW Group, for micro, small and medium-sized enterprises (MSMEs) that are managed or owned by women. This is aligned to the Bank’s contribution to the achievement of the global Sustainable Development Goals (SDGs). 9. Commitment to Sustainability In 2022, the bank embarked on an enhanced environmental, social and governance (ESG) roadmap to integrate ESG considerations into its operations with several key milestones achieved. The Bank’s commitment to ESG excellence was celebrated at the 2023 Kenya Bankers’ Sustainable Finance Catalyst Awards, with the bank emerging as the Overall Award Winner. This was the fourth win by the Bank since the inception of the award six years ago. Co-op Bank Foundation, the Group’s social investment vehicle, continues to provide Scholarships to gifted but needy students from all regions of Kenya. The sponsorship includes fully paid secondary education, full fees for university education, Internships, and career openings for beneficiaries. The foundation is fully funded by the bank and has supported 10,264 students since the inception of the programme.
BY TUKO NEWS