The Co-operative Bank of Kenya (Co-op Bank) has reported a 9.8% increase in net profit to KSh 25.5 billion in 2024 from KSh 23.2 billion in 2023.
The rise in profitability was on the back of a 24.8% rise in interest income to Ksh. 86.2 billion while income from government securities hit KSh 26.9 billion, up from 23.1 billion.
On the other hand, operating expenses increased by 17.7% to KSh 46.7 billion, primarily due to higher staff costs, which grew to KSh 18.3 billion from KSh 16.7 billion.
Net loans and advances stood at KSh 373.7 billion, slightly down from KSh 374.2 billion in 2023, while customer deposits grew from KSh 451.6 billion in 2023 to KSh 506.1 billion. Non-performing loans (NPLs) rose to KSh 71.1 billion from KSh 66.9 billion, reflecting increased borrower distress amid elevated inflation and a challenging business environment.
Foreign exchange trading income saw a notable increase to KSh 5 billion, compared to KSh 3.2 billion in the previous year. The bank’s total capital stood at KSh 142 billion, surpassing the regulatory minimum, with a core capital to total risk-weighted assets ratio of 18.3%. The liquidity ratio stood at 59.9%, well above the statutory minimum of 20%, highlighting a strong buffer against possible market shocks.
Co-op Bank’s subsidiary, Kingdom Bank, reported a profit after tax of KSh 549 million in 2024, down from KSh 655 million in 2023, reflecting potential profitability challenges. Despite this, its interest income grew to KSh 4.4 billion, and its non-performing loans declined slightly to KSh 3.0 billion.
The Board 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.