The Co-operative Bank of Kenya (Co-op Bank) has posted a 9.8 percent increase in net profit for 2024, reaching KSh 25.5 billion, up from KSh 23.2 billion in 2023. The strong performance was driven by a 24.8 percent rise in interest income, which grew to KSh 86.2 billion, while income from government securities rose to KSh 26.9 billion from KSh 23.1 billion in the previous year.
Despite the rise in profitability, operating expenses also saw a significant increase of 17.7 percent to KSh 46.7 billion, largely attributed to higher staff costs, which climbed to KSh 18.3 billion from KSh 16.7 billion. Net loans and advances recorded a slight decline to KSh 373.7 billion from KSh 374.2 billion, reflecting cautious lending amid economic uncertainties. However, customer deposits grew to KSh 506.1 billion from KSh 451.6 billion, signaling continued confidence in the bank’s stability.
The bank’s non-performing loans (NPLs) increased to KSh 71.1 billion from KSh 66.9 billion, highlighting rising borrower distress due to inflationary pressures and a challenging business environment. Meanwhile, foreign exchange trading income surged to KSh 5 billion, a notable jump from KSh 3.2 billion in 2023.
Co-op Bank remains well-capitalized, with total capital standing at KSh 142 billion, surpassing regulatory requirements. Its core capital to total risk-weighted assets ratio stood at 18.3 percent, while the liquidity ratio remained strong at 59.9 percent, well above the statutory minimum of 20 percent.
The bank’s subsidiary, Kingdom Bank, reported a decline in profit after tax to KSh 549 million from KSh 655 million in 2023, indicating potential profitability challenges. However, its interest income rose to KSh 4.4 billion, and non-performing loans slightly reduced to KSh 3.0 billion.
Following the strong financial performance, the Co-op Bank Board has recommended a dividend of KSh 1.50 per share, with the distribution set for June 10, 2025, to shareholders on record as of April 28, 2025.