By Gitahi Ngunyi
@gitahi_ngunyi
Coop Bank has reported a 10.6 percent growth in profit before tax for the first quarter 2024. Results shared with media houses earlier today of showed profit before tax increasing to Sh9.01 Billion for the period ending 31st March 2024 compared to Sh8.15 Billion recorded for a similar period last year.
The results also showed after tax profit increased to Sh6.58 billion compared to Sh6.11 billion reported in 2023.
Banking group chief executive officer Dr. Gideon Mureithi said the strong performance is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.
“The Group reports excellent efficiency gains from the various initiatives to record a cost-to-income Ratio of 44.1 percent during the reporting period from 59 percent in 2014 when we began our growth and efficiency journey,” said Dr. Muriuki in a statement accompanying the results.
Total assets grew by 13.2 percent to Sh714.7 billion, Sh631.1 billion in the same period last year with net loans and advances increasing 5 percent to Sh378.1 billion, from Sh360.1 billion in 2023.
The results show the bank’s total operating income grew by 5.1 percent from Sh17.9 billion to Sh18.8 billion. Total non-interest income remained stable at Sh7.1 Billion, similar to performance recorded a year ago while net interest income grew by 8.6 percent from Sh10.8 billion to Sh11.7 billion in 2023.
Total operating expenses increased marginally by 0.5% from Sh9.8 billion to Sh9.9 billion. Customer deposits grew 14.8 percent to Shs481.8 billion from Sh419.8 billion while external funds from development partners grew to Sh60.1 billion from Sh48.4 billion in 2023. Shareholders’ funds have grown to Sh127.1 billion, representing a 12.9 percent increase from Sh112.6 billion in 2023.
The CEO said that the group’s insurance subsidiary, Co-op Bancassurance Intermediary posted a profit before tax of Sh305 million in the reporting, riding on strong penetration of Bancassurance business, while the Co-operative Bank of South Sudan that is a unique joint venture (JV) partnership with Government of South Sudan posted Sh128.5 million during the reporting period compared to a loss of Sh71.4 million for a similar period in 2023.
“Co-op Trust Investment Services contributed Sh75.5 Million profit before tax grew 47.6 percent compared to Sh51.2 million for a similar period, growth. The subsidiary has Sh227.2 billion funds under management,” he said.
He revealed that Kingdom Bank (A niche MSME Bank) contributed a profit Before Tax of Sh350.3 million, a remarkable growth of 33.9 percent from Sh261.5 Million reported in Q12023.
