Business & Money
Co-op Bank’s Q3 2024 Profit Up 4.4% to Sh19.2bn on Income Growth
: Co-op Bank Kenya posts Sh19.2bn profit in Q3 2024, driven by interest and non-
interest income growth, achieving a 21.3% return on equity.
Tier-one lender Co-operative Bank of Kenya (Co-op Bank) posted an impressive
financial performance for the third quarter of 2024, achieving a net profit of Sh19.2
billion.
This marks a 4.42% rise from Sh18.5 billion reported during the same period last year.
The bank attributed this growth to interest and non-interest income increases,
underscoring a robust trajectory for Kenya’s banking sector, which continues to serve as
a cornerstone of the nation’s economic stability and growth.
Co-op Bank Group CEO Gideon Muriuki expressed pride in the bank’s resilience and
strategic direction.
“The strong performance by the bank is in line with the group’s strategic focus on
sustainable growth, resilience, and agility,” he said. “Our transformation agenda, aptly
named the ‘Soaring Eagle,’ has enabled us to deliver a competitive return on equity of
21.3 per cent.”
Revenue Breakdown and Income Growth
The bank’s total operating income jumped by 10.8% from Sh53.4 billion to Sh59.2
billion, with non-interest income increasing by 8.2% from Sh20.6 billion to Sh22.3 billion.
This growth was supported by a diversified revenue base, where Co-op Bank leveraged
both traditional and non-interest income sources to drive profitability. The lender’s focus
on growing fee-based income and forex trading contributed significantly to its total non-
interest revenue.
In addition, the bank’s interest income saw a steady rise, driven by expanded lending
operations targeting the corporate and SME segments and increasing investments in
government securities.
This balanced growth approach reflects Co-op Bank’s commitment to sound risk
management while positioning itself strategically in various income-generating sectors.
Strategic Vision and Future Plans
Central to Co-op Bank’s success is its ‘Soaring Eagle’ Transformation Agenda, which
prioritises sustainable growth and enhanced digital capabilities.
This agenda has propelled Co-op Bank’s digital banking initiatives, making services
more accessible and efficient.
Digital platforms like MCo-opCash have allowed the bank to expand its reach across
Kenya, reducing its dependency on traditional brick-and-mortar branches and driving
higher customer engagement.
The bank also continues to support Kenya’s cooperative movement, a key market pillar,
which has strengthened its customer base and amplified its influence in the financial
sector.
Outlook for Kenya’s Banking Sector
With Kenya’s financial landscape evolving and digital transformation gaining traction,
Co-op Bank’s strategic positioning bodes well for its future.
The banking sector’s steady performance remains a positive sign for the economy,
contributing to overall economic resilience and stability.
Co-op Bank’s robust third-quarter performance not only highlights its strategic strengths
but also serves as an indicator of the broader sector’s capacity to navigate economic
shifts and deliver strong shareholder returns.
As Co-op Bank advances its growth strategy, it remains well-positioned to continue
delivering value to its shareholders and contributing meaningfully to Kenya’s financial
inclusion objectives.
: KCB Group reports Sh44.5B ( US$ 342.31) nine-month profit, outpacing
Equity Bank. Learn about its 49% growth, challenges, and stock performance this
year.
KCB Group Plc has outperformed Equity Bank to cement its position as Kenya’s leading
lender, posting a net profit of Sh44.5 billion for the nine months ending September
This represents a 49% year-on-year growth, surpassing Equity Bank’s Sh37.5
billion profit during the same period.
Profit Growth Driven by Core Business Performance
The remarkable profit growth was fueled by higher earnings from both interest and non-
interest income streams. KCB’s diverse revenue base has been pivotal in maintaining
its dominance in the competitive banking sector.
Non-Performing Loans a Key Concern
Despite the impressive profit growth, KCB’s non-performing loan (NPL) ratio rose to
18.5%, compared to 16.5% last year. This increase highlights persistent challenges in
managing credit risk, with Chief Financial Officer Lawrence Kimathi acknowledging it as
a “pain point” for the bank.
KCB Stock Outshines Peers on NSE
KCB’s strong financial performance has translated into exceptional stock market results.
The bank’s stock has risen 78.8% year-to-date, making it the best-performing banking
stock on the Nairobi Securities Exchange (NSE).
Plans to Sell National Bank of Kenya
Earlier this year, KCB announced plans to sell its struggling subsidiary, National Bank of
Kenya (NBK), to Nigeria’s Access Bank. While Nigerian regulators have approved the
deal, it is still awaiting clearance from Kenya’s Central Bank. The sale aims to
streamline KCB’s operations and address losses at NBK.
CEO Paul Russo Optimistic About Year-End Performance
“The journey has not been without its hurdles, but our ability to walk alongside our
customers has driven our success,” said KCB CEO Paul Russo. He expressed
confidence in closing the year on a high note, leveraging improving economic conditions
across the region.
Key Figures at a Glance
● Net Profit: Sh44.5 billion (+49%)
● Non-Performing Loan Ratio: 18.5% (up from 16.5%)
● Stock Performance: +78.8% year-to-date
KCB’s strong performance underscores its resilience in navigating challenges and its
commitment to sustaining growth in Kenya’s banking sector.
Business & Money
Top 10 Kenyan banks by total assets as of 2023, based on data from the Central Bank of Kenya:
KCB Bank Kenya Limited
Total Assets: KSh 1.425 trillion
Market Share: 17.4%
Equity Bank Kenya Limited
Total Assets: KSh 1.004 trillion
Market Share: 12.2%
NCBA Bank Kenya PLC
Total Assets: KSh 661.7 billion
Market Share: 9.2%
Co-operative Bank of Kenya
Total Assets: KSh 624.3 billion
Market Share: 8.8%
Absa Bank Kenya PLC
Total Assets: KSh 520.3 billion
Market Share: 6.6%
Standard Chartered Bank Kenya
Total Assets: KSh 429.3 billion
Market Share: 5.9%
Stanbic Bank Kenya
Total Assets: KSh 449.6 billion
Market Share: 5.8%
I&M Bank Limited
Total Assets: KSh 405.6 billion
Market Share: 5.4%
Diamond Trust Bank Kenya
Total Assets: KSh 399.6 billion
Market Share: 5.3%
Bank of Baroda (Kenya) Limited
Total Assets: KSh 201.9 billion
Market Share: 2.8%
These rankings illustrate the dominance of large Tier 1 banks, which collectively control over
76% of the market share. Strategic expansions, increased deposit mobilisation, and robust
lending practices underpin the sector’s strong performance
: Vasundhara Oswal, daughter of industrialist Pankaj Oswal, faces serious
charges in Uganda. The Oswals call for UN intervention amid claims of corporate
jealousy.
Vasundhara Oswal, the 26-year-old daughter of prominent Swiss-Indian industrialist
Pankaj Oswal, has found herself at the centre of a legal storm in Uganda.
Her father, a well-established business figure, is known for his diverse investments,
most notably a $150 million ethanol plant in Uganda.
This plant, the largest of its kind in East Africa, is a key part of Oswal’s broader strategy
to invest in industrial and eco-friendly solutions in the region. The facility produces extra-neutral alcohol (ENA), which is used in the beverage, cosmetics, and pharmaceutical industries.
It is recognised for its modern technology and sustainable practices, such as zero liquid
discharge, emphasising the Oswal family’s commitment to both industrial growth and
environmental responsibility.
In addition to the ethanol plant, Pankaj Oswal has made strategic investments across
various industries, including petrochemicals, agriculture, and real estate.
His ventures reflect a global reach, extending to Australia and India, where he has
been involved in industries ranging from agriculture to renewable energy.
His diversified business approach and commitment to sustainability have made him a prominent figure in international business. However, in October 2024, the family’s legacy was overshadowed by the legal troubles surrounding Vasundhara Oswal.
She was detained on October 1, 2024, after being accused of involvement in the
alleged murder of Mukesh Menaria, a former employee who had worked with the
Oswals since 2017.
Menaria had accused the family of harassment but later testified under oath that they
had not harmed him Despite this, charges of kidnapping and murder were brought against Vasundhara.
Her family has strongly denied these allegations, claiming that the charges are
politically motivated and part of a larger conspiracy orchestrated by their business rivals
in collaboration with corrupt officials in Uganda.
The Oswals have appealed to the United Nations, seeking intervention and asserting
that the legal proceedings against Vasundhara are unlawful. Vasundhara has actively managed the family business throughout her career, especially the ethanol plant, and led the company’s sustainable initiatives.
Beyond her business involvement, she has also been an advocate for community
welfare and mental health, further cementing the Oswal family’s reputation for corporate
social responsibility.
The unfolding legal drama has raised important questions about the intersection of
business, politics, and the legal systems in Uganda.
While the Oswal family’s ventures reflect a blend of industrial innovation and social
responsibility, the legal challenges Vasundhara faces have cast a shadow over their
business empire, highlighting the complex dynamics at play in East Africa.
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