- On Thursday, March 20, Co-op Bank Managing Director Gideon Muriuki unveiled the bank’s financial outcomes for 2024.
- Over the reviewed period, the bank's net earnings increased by 7.5%, climbing from KSh 23.2 billion recorded in the prior year.
- Due to the outstanding performance, the bank's board suggested issuing a dividend of KSh 1.50 per share.
Japhet Ruto, who works as a journalist for INSPIRATIONS DIGITAL.co.ke, has accumulated more than eight years of expertise in covering fields such as finance, business, and technology. His work offers comprehensive analysis of Kenya’s economic patterns and issues extending further across different regions.
The Co-operative Bank of Kenya has announced a post-tax profit of KSh 25.5 billion for the fiscal year 2024.
How Did Cooperative Bank's Profits Increase?
On Thursday, March 20, the financial institution released a statement indicating that their net profits increased by 7.5%, reaching KSh 23.2 billion compared to the previous year’s figure.
The managing director of Co-op Bank, Gideon Muriuki, credited the strong financial outcomes to the company’s strategic emphasis on building resilience, enhancing flexibility, and promoting sustainable development, all underpinned by their "Soaring Eagle" Transformation Initiative.
Due to the impressive profits, the bank's board suggested a dividend of KSh 1.50 per share; however, the definitive amount will be set at the bank's annual general meeting scheduled for May 16, 2025.
Muriuki announced that this represents the finest performance in the bank’s history. This robust outcome has resulted in a consistent rise in shareholder wealth, evidenced by an impressive equity return rate of 19.7%. Consequently, the Board of Directors has proposed a dividend payout of KSh 1.50 per share, pending regulatory and shareholder consent.
Co-op Bank's performance highlights
Over the reviewed period, total assets saw an increase of 10.7%, reaching KSh 743.2 billion from KSh 671.1 billion compared to the previous year at this time.
Advances and net loans declined slightly to KSh 373.7 billion from KSh 374.2 billion in 2023.
Client deposits increased by 12.1%, rising to KSh 506.1 billion from KSh 451.6 billion, whereas external financing from developmental organizations decreased from KSh 67.3 billion to KSh 55.4 billion.
Shareholders' funds saw an uptick of 28%, rising from KSh 113.6 billion to KSh 145.4 billion, primarily due to strong gains in retained earnings totaling KSh 16.7 billion.
The overall non-interest income rose from KSh 26.5 billion to KSh 29.1 billion, marking an increase of 10.1%.
The net interest income increased from KSh 45.2 billion to KSh 51.5 billion, representing a rise of 13.9%, whereas the overall operational expenditures climbed from KSh 39.7 billion to KSh 46.7 billion.
What is the number of branches that Co-op Bank has?
The bank's expansion drive has seen its outlets reach 211, with five in South Sudan.
This year, Co-op Bank intends to introduce 15 additional branches, with 14 having been opened in various towns so far.
In 2024, the bank expanded its workforce by adding 463 new members, increasing their total number of employees from 5,400 to 5,863.
What was the performance of the other banks like?
As for related developments, Standard Chartered Bank announced a net profit of KSh 20.06 billion in the year 2024.
After experiencing a 64.9% rise in post-tax profits totaling KSh 61.8 billion, KCB Group declared a comprehensive dividend distribution of KSh 9.6 billion for the financial year concluding in December 2024.
The interest revenue from loans (KSh 153.6 billion), government securities (KSh 50.2 billion), and placements (KSh 9.6 billion) significantly contributed to the group’s total income of KSh 204.9 billion.
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