Co-operative Bank FY 24 Profits Hits Sh 25bn

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Co-operative Bank of Kenya net profit for the year ended December 2024 rose to Sh 25.46 billion, a 9.8 percent increase from the previous year.

The growth comes on the back of a double-digit rise in total operating income, which grew by 12.5 percent to Sh 80.65 billion, driven by a steady expansion in the lender’s asset base and customer deposits.

Customer deposits rose by 12.06 percent to Sh 506.11 billion, helping to lift total assets by 10.74 percent to Sh 743.19 billion. However, the loan book remained relatively flat, dipping slightly by 0.13 percent to Sh 373.73 billion.

Operating expenses climbed 13 percent to Sh 38.03 billion, while provisions for bad loans surged by 44.2 percent to Sh 8.66 billion. Gross non-performing loans also edged up by 6.2 percent to Sh 71.08 billion.

Despite the uptick in costs, Co-op Bank maintained a solid cost-to-income ratio of 47.2 percent.

The lender’s shareholders’ funds rose by 28.02 percent to Sh 145.38 billion. Return on equity stood at a competitive 19.7 percent.

Read: Standard Chartered Kenya Announces Sh37 Per Share Final Dividend for FY 24

Co-op Bank’s shareholders are set to benefit from the improved performance, with the board maintaining a dividend payout of Sh 1.50 per share, unchanged from the last two years. The dividend, totaling Sh 8.8 billion, will be paid on June 10 to shareholders on record as of April 28.

“The strong performance has led to a sustained increase in shareholder value as reflected in the competitive return on equity of 19.7 percent.” said Co-op Bank’s Group Managing Director Gideon Muriuki.

Meanwhile, Kingdom Bank, Co-op Bank’s subsidiary where it holds a 90 percent stake, saw its net profit drop to Sh 548.9 million from Sh 655 million, largely due to a higher tax charge.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.