Co-op Bank of Kenya reports 45% growth in half-year profit

The bank says its performance is in line with its “focus on sustainable growth, resilience and agility”

The Co-op Bank of Kenya has reported a growth in profits in the first half of this year.

The bank reported a Kshs 15.3bn (£110.1m) profit before tax for the second quarter, up from Kshs 10.5bn (£75.5m) in last year’s second quarter. This represents a 45% growth in profit since 2021. The bank’s post-tax profit was Kshs 11.5bn (£82.7m) compared to Kshs 7.4bn (£53.2m) in 2021.

Based on its performance the bank says it has been able to deliver a return on equity of 24.2% to its shareholders.

The total value of the bank’s assets increased by 5.4% to Kshs 603.9bn (£4.3bn) compared with Kshs 573bn (£4.1bn) in the same period last year. The bank also saw an increase in its total operating income, rising 17.8% to Kshs 34.4bn(£247.2m) from Kshs 29.2bn(£209.9m).

The bank also reports that it has been able to serve 9 million account holders through its “universal banking model” and “sales force effectiveness”.

The bank’s cost to income ratio has also been brought down to 46% in this quarter from 59% when it says it began its growth and efficiency journey in 2014. Through its digital strategy, the bank has also moved 94% of its transactions to alternative delivery channels including internet and mobile banking and a 24 hour contact centre.

Managing director and CEO Dr Gideon Muriuki said: “The strong performance by the bank is in line with the Group’s strategic focus on sustainable growth, resilience and agility.”

He later added: “The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors. This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint, 9 million customers and the unique synergies in the over 15 million member co-operative movement that is the largest in Africa.”