The Co-operative Bank of Kenya saw its profit after tax increase by 7.7 percent to Sh6.58 billion in the first quarter of 2024 compared to the same period last year.
This growth was primarily driven by an increase in net interest incomes.
Quarterly Profit Comparison
In the first quarter of last year, which ran from January to March, the lender made Sh6.11 billion in profit after tax. This year’s figures reflect a significant improvement in the bank’s financial health.
Revenue Breakdown
Net interest revenue, including fees and commissions, expanded by 8.6 percent, reaching Sh11.7 billion, up from Sh10.8 billion in the previous year. Conversely, non-interest income remained stable at Sh7.1 billion.
Operating Income and Expenses
Co-op Bank reported a Profit Before Tax of Sh9.01 billion for Q1 2024, a commendable 10.6 percent growth compared to Sh8.15 billion recorded in Q1 2023, according to Co-op Bank Group MD and CEO Gideon Muriuki.
Operating expenses saw a slight increase of 0.5 percent to Sh9.9 billion, but this was offset by a 5.1 percent rise in operating income.
Deposits and Loans
Customer deposits grew by 14.8 percent, reaching Sh481.8 billion. Net loans and advances also saw a rise, growing by 5 percent to Sh378.1 billion.
Performance of Subsidiaries
Kingdom Bank Limited
Kingdom Bank Limited, a niche MSME bank under the Co-op Bank umbrella, recorded a substantial 33.9 percent increase in gross profit, amounting to Sh350.3 million.
Co-op Bancassurance Intermediary Ltd
Co-op Bancassurance Intermediary Ltd posted a Profit Before Tax of Sh305 million in Q1 2024, benefiting from strong penetration of the Bancassurance business.
Co-operative Bank of South Sudan
The Co-operative Bank of South Sudan, a unique joint venture partnership with the Government of South Sudan (Co-op Bank holds 51 percent and the Government of South Sudan holds 49 percent), made a Profit Before Tax of Sh128.5 million in Q1 2024. This is a significant turnaround from a loss of Sh71.4 million in Q1 2023.
These results demonstrate the robust performance of the Co-operative Bank of Kenya and its subsidiaries, highlighting the institution’s strategic growth and resilience in various sectors.
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