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.