Co-operative Bank of Kenya (Co-op Bank) has recorded a remarkable 7.6% growth in its net profit, reaching Sh18.4 billion for the nine months ended September 2023, driven by a surge in interest income from loans. This impressive performance surpasses the Sh17.1 billion net profit achieved during the same period last year.
The bank’s net interest income witnessed a 2.5% increase to Sh32.8 billion, while total revenue from non-interest sources expanded by 2.1% to Sh20.6 billion. This growth is attributed to the bank’s unwavering commitment to its strategic focus on sustainable growth, resilience, and agility, as highlighted by Co-op Bank CEO and Managing Director Gideon Muriuki.
Co-op Bank’s loan book experienced a significant expansion, reaching Sh378.1 billion from Sh335.2 billion, representing a robust 12.8% growth. This expansion is a testament to the bank’s continued support for businesses and individuals across the country.
The bank’s subsidiaries also contributed significantly to the positive financial results. Co-op Consultancy & Bancassurance Intermediary Ltd. posted a gross profit of Sh762.9 million in Q3 2023, driven by its strong penetration of the banking business. Similarly, Kingdom Bank Limited, a niche MSME bank, contributed a profit before tax of Sh786.6 million, a 24.8% growth from the Sh630.2 million reported last year.
Muriuki emphasized Co-op Bank’s unique position as a predominantly-owned institution by the 15 million-member Co-operative Movement, enabling it to deliver shared prosperity and foster inclusive financial growth. The bank’s commitment to responsible banking practices and its focus on avoiding activities that could jeopardize future generations further underscore its dedication to sustainable growth and long-term success.
In conclusion, Co-op Bank’s impressive financial performance for the nine months ended September 2023 is a testament to its strong strategic focus, its commitment to supporting its customers, and its dedication to sustainable growth and responsible banking practices. The bank’s positive results reinforce its position as a leading financial institution in Kenya, contributing significantly to the country’s economic development.