The Co-operative Bank of Kenya has reported its highest-ever profit for the 2024 financial year, closing at Ksh34.8 billion, marking a 7.5% growth from Ksh32.4 billion recorded in 2023.
After tax, this translates to a net profit of Ksh25.5 billion, a 9.8% increase from Ksh23.2 billion in 2023.
In a statement dated March 20, Group Managing Director and CEO Gideon Muriuki attributed this remarkable growth to the bank’s strategic alignment with its ‘Soaring Eagle’ Transformation Agenda, which focuses on sustainable growth, resilience, and agility.
“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility, riding on the ‘Soaring Eagle’ Transformation Agenda,” the statement read.
This strong financial performance has significantly boosted shareholder value, as reflected in a competitive Return on Equity (ROE) of 19.7%.
Dividend Proposal and AGM Announcement
In light of the impressive performance, the Board of Directors has recommended a dividend payout of Ksh1.50 per share, pending approval from regulators and shareholders. The proposal will be discussed at the next Annual General Meeting (AGM), which is scheduled to be held virtually on May 16.
Key Financial Highlights
The 2024 financial year saw substantial growth across various financial metrics:
- Total Assets: Grew to Ksh743.2 billion, reflecting a 10.7% increase from Ksh671.1 billion in 2023.
- Customer Deposits: Increased to Ksh506.1 billion.
- Shareholders’ Funds: Rose to Ksh145.4 billion.
- Net Loans and Advances: Reported at Ksh373.7 billion, slightly lower than Ksh374.2 billion in 2023.
- External Development Partner Funds: Stood at Ksh5.4 billion, significantly lower than Ksh67.3 billion in 2023.
Additionally, key financial indicators saw positive movements:
- Total Operating Income: Increased by 12.5%.
- Total Non-Interest Income: Rose by 10.1%.
- Net Interest Income: Increased by 13.9%.
- Total Operating Expenses: Went up by 17.7%.
The bank also recorded significant efficiency improvements, reporting a Cost-to-Income Ratio of 47.2% in 2024, a substantial improvement from 59% in 2014 when it initiated its growth and efficiency strategy.
Expanding Digital Footprint and Financial Inclusion
A key factor in the bank’s success has been its expansion in digital banking. Over 92% of all customer transactions were successfully moved to alternative delivery channels, including:
- 24-hour Contact Center
- 617 ATMs & Cash Deposit Machines (CDMs)
- Mobile & Internet Banking
- Over 16,000 Co-op kwa Jirani agents
The Mco-op Cash Mobile Wallet has played a vital role in digital financial inclusion, facilitating loan disbursements worth Ksh76.7 billion in 2024, averaging Ksh6.39 billion per month.
Conclusion
The Cooperative Bank of Kenya continues to solidify its position as one of Kenya’s leading financial institutions, demonstrating strong financial performance, digital innovation, and sustainable growth.
With increased efficiency, digital transformation, and strategic focus, the bank remains well-positioned to drive further growth and shareholder value in the coming years.
As stakeholders await the upcoming AGM on May 16, the focus remains on the bank’s continued expansion, digital innovation, and sustainable banking practices.
