Co-operative Bank of Kenya (Co-op) recorded a 9.8 percent increase in profit, rising from KSh 23.2 billion in 2023 to KSh 25.5 billion in 2024.
Interest revenue surged by 24.8 percent, reaching KSh 86.2 billion, while income from government securities grew from KSh 23.1 billion to KSh 26.9 billion, bolstering the bank’s overall performance.
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Customer deposits increased to KSh 506.1 billion
Customer deposits rose to KSh 506.1 billion, up from KSh 451.6 billion in 2023. However, net loans and advances showed a slight decline, standing at KSh 373.7 billion compared to KSh 374.2 billion the previous year.
In the face of high inflation and a difficult business climate, non-performing loans (NPLs) climbed from KSh 66.9 billion to KSh 71.1 billion, indicating heightened borrower distress.
Operating expenses increased by 17.7%
The main cause of the 17.7 percent increase in operating expenses to KSh 46.7 billion was the rise in staff costs, which went from KSh 16.7 billion to KSh 18.3 billion.
A strong non-interest revenue of KSh 29.1 billion, allowed the income-to-expenditure ratio to remain manageable despite the rising costs.
Foreign exchange trading income increased significantly over the previous year from KSh 3.2 billion to KSh 5 billion.
At KSh 142 billion, the bank’s overall capital above the regulatory requirement, and its core capital to total risk-weighted assets ratio was 18.3 percent.
A robust buffer against potential market shocks was highlighted by the liquidity ratio, which was 59.9 percent, significantly higher than the legally required minimum of 20 percent.
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Kingdom Bank reports KSh 549 million
Profit after tax for Kingdom Bank, a division of Co-op Bank, decreased from KSh 655 million in 2023 to KSh 549 million in 2024, indicating possible difficulties with profitability.
However, its non-performing loans decreased somewhat to KSh 3.0 billion, while its interest income increased to KSh 4.4 billion nevertheless.
Co-op Bank wants to manage the economic climate this year by concentrating on risk management techniques and digital banking.
Improving the bank’s assets and expanding its clientele will be crucial as Kenya’s economy continues to adapt to inflationary pressures and shifting interest rates.
As of April 28, 2025, stockholders on file were to receive a dividend of KSh 1.50 per share, as recommended by the Board, on June 10, 2025.