May 24, 2024

Co-op Bank Q1 2024 Profit Climbs 10.6% to 9.01 Billion

Co-op Bank Q1 2024 Profit Climbs 10.6% to 9.01 Billion

Co-op Bank of Kenya kicked off the year on a high note, recording a 10.6% year-on-year increase in Profit before Tax for Q1 2024. The bank reported a profit of Ksh 9.01 billion, compared to Ksh 8.15 billion in Q1 2023. Profit after Tax also rose to Ksh 6.58 billion, up from Ksh 6.11 billion in the same period last year.

Total assets surged by 13.2% to reach Kshs. 714.7 billion, while net loans and advances increased by 5% to Kshs. 378.1 billion.

Customer deposits witnessed a significant rise of 14.8% to Kshs. 481.8 billion, indicating strong customer confidence in the bank. Shareholder funds also grew by 12.9% to stand at Kshs. 127.1 billion.

Co-op Bank’s profitability stems from a combination of strategic decisions. Total operating income climbed by 5.1%, with a notable 8.6% increase in net interest income, showcasing the bank’s ability to leverage its assets effectively.

Cost management initiatives also yielded positive results, with the Cost-to-Income Ratio improving significantly from 59% in FY2014 to 44.1% in Q1 2024. The bank’s investment in a new core banking system is paying dividends.

The cutting-edge Finacle system from Infosys empowers Co-op Bank to deliver innovative solutions and enhance service excellence. This, coupled with a solid digital channel strategy, has resulted in over 93% of customer transactions being conducted through alternative channels, including mobile banking, internet banking, and a vast network of ATMs and Co-op Kwa Jirani agents.

Co-op Bank’s commitment to Micro, Small, and Medium Enterprises (MSMEs) is evident in its various initiatives. Over 214,000 customers have benefitted from MSME packages, and mobile solutions like Mobile E-Credit disbursed Kshs. 3.9 billion in Q1 2024. Additionally, the bank secured a long-term loan specifically designated to support women-owned/managed MSMEs, further emphasizing its dedication to financial inclusion.

Co-op Bank’s branch network continues to grow, reaching a total of 195 outlets, including 4 located in South Sudan. This year, the bank plans to expand further with 15 new branches, including locations already opened at Imaara Mall on Mombasa Road in Nairobi and Ugunja in Siaya.

Additionally, their subsidiary, Kingdom Bank, has opened a new branch in Gikomba, strategically aligning with their expertise in serving the micro, small, and medium-sized enterprise (MSME) market.

Co-op Bank’s dedication to sustainability is reflected in its enhanced Environmental, Social, and Governance (ESG) roadmap. The bank’s commitment to ESG excellence was recently recognized at the 2023 Kenya Bankers’ Sustainable Finance Catalyst Awards, where it emerged as the Overall Winner. Furthermore, the Co-op Bank Foundation continues to invest in the future by providing educational opportunities for underprivileged students.

Read Also : CIC Insurance Group’s Profits Jump by 817.6% in FY’2023

Co-op Bank customers can utilize the co-op bank m-pesa pay bill numbers: 400200 for general deposits and 400222 for deposits with a reference number (ideal for businesses or including your account number). Additionally, Co-op Bank provides online banking for seamless account access.

If you have any questions or require assistance, the co-op bank customer care team is available via the co-op bank contacts at 020 2776000, 0736 690101, or 0703 027000, or you can email them at customerservice@www.co-opbank.co.ke. You can also access their banking services through the co-op bank ussd code *667#. The co-op bank code is 11000 and the co-op bank swift code is KCOOKENA.