Co-op Bank kicked off 2024 with a strong performance, reporting a profit after tax of Ksh 13 billion in H1 2024. This marks a 7 percent growth compared to the Ksh 12.1 billion recorded in the same period of 2023.
According to the Co-op Bank H1 results announced today, revenue increased by 10.9 percent to Ksh 39.2 billion, up from Ksh 35.4 billion in 2023. This positive financial outcome comes in spite of significant challenges at the start of 2024, including severe floods and extensive Gen Z protests across the nation, which hampered economic activity early in the year.
The bank’s customer loan portfolio also saw growth, rising to Ksh 375.6 billion, which represents a 2.8 percent increase from Ksh 365.4 billion in the previous year. This continues a decade-long trend of growth in Co-op Bank’s loan portfolio, which has steadily risen from Ksh 204.5 billion in the first half of 2015. However, non-performing loans grew by Ksh 11.32 billion, reaching Ksh 69.6 billion.
The bank’s total assets rose to Ksh 716.9 billion, an increase of Ksh 52 billion compared to the first half of 2023. Customer deposits also showed a robust 9.4 percent growth, rising from Ksh 463.9 billion in the first six months of 2023 to Ksh 507.4 billion.
Interest income increased by 24.4 percent, climbing from Ksh 32 billion in 2023 to Ksh 39.8 billion in 2024. However, the bank’s net expenses in the first half of 2024 jumped by 52.6 percent, increasing from Ksh 10.4 billion to Ksh 15.9 billion. This rise was largely due to a 12.2 percent increase in operating expenses, which went up from Ksh 16.3 billion in the first half of 2023 to Ksh 18.3 billion in 2024.
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Net interest income experienced a 10.7 percent growth, reaching Ksh 23.9 billion, up from Ksh 21.5 billion. Additionally, non-interest income increased to Ksh 15.4 billion, representing a Ksh 1.6 billion rise from the Ksh 13.8 billion recorded in 2023.
Shareholders’ equity also saw a boost, growing by 17 percent to Ksh 126.7 billion, up from Ksh 108.3 billion in 2023. Meanwhile, loan loss provisions increased by 4.9 percent to Ksh 3 billion, and the cost-to-income ratio stood at 46.6 percent.