The Co-operative Bank of Kenya’s net profit for the fiscal year 2023 increased by 5.2% to Ksh 23.2 billion, demonstrating continued profitability.
Its earnings per share (EPS) went up 5.4% to Ksh 3.92, reflecting positive shareholder returns.
“The strong performance has led to a sustained increase in shareholder value as reflected in the competitive return on equity of 21 percent,” said Gideon Muriuki, the managing director at Co-op Bank.
“The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors.”
A remarkable 2023 for Co-operative Bank. With a 10% profit growth to Kshs 32.4 Billion and a strong financial standing, our assets have grown to Kshs 671.1 Billion, and we've disbursed a total of Kshs 374.2 Billion in loans. pic.twitter.com/ToFNdp2QXL
— Co-op Bank Kenya (@Coopbankenya) March 21, 2024
As a result, the Co-op Bank Board of Directors has recommended a dividend payment of Ksh 8.8 billion, or Ksh 1.50 per share, subject to approval by the regulators and shareholders.
Co-op Subsidiaries
Co-op Bank’s subsidiary, Kingdom Bank, net profit fell to Sh655 million (down from Sh930 million) due to a higher tax bill. Despite this, pre-tax earnings for Kingdom Bank actually grew by 32% to Sh1.1 billion.
Other subsidiaries of Co-op Bank performed well. Co-op Consultancy and Bancassurance Intermediary Limited reported a pre-tax profit of Sh877.1 million, while Co-operative Bank of South Sudan returned a pre-tax profit of Sh291.3 million.
Co-op Trust Investment Services Limited also contributed Sh226 million in pre-tax profit, with its funds under management reaching Sh218.4 billion by the end of the period.
Total assets grew by 10.5% to Ksh 671.1 billion, indicating expansion.
However, its net interest income declined slightly by 0.6% during the fiscal year to Ksh 45.2 billion.
Provisions were reduced by 30.8% to Ksh 6 billion, potentially indicating a decrease in expected loan losses.
Gross non-performing loans (NPLs) increased by 27.9% to Ksh 66.9 billion, highlighting a rise in overdue loans.
RELATED
- KCB Group FY23 Profit Slips by 8pc Despite Revenue Growth
- Absa Bank Raises Dividend Payout 14.8% to Sh8.4 Billion on Profit Growth
- Standard Chartered Kenya Boosts EPS and Dividend
- Stanbic Holdings Reports 34% Strong FY23 Growth with Highest Dividend Ever