Co-Op Bank Net Profit Rises 5.2% to Sh6.1B in Q1

Due to increased interest and non-interest incomes, the Co-operative Bank of Kenya saw an increase in its profit after tax, which reached Sh6.1 billion in the three months ending in March 2023.

High interest and non-interest income, which includes commissions and fees, were blamed for the rise in revenue.

Interest income increased by 3.9 percent to 10.8 billion while non-interest income increased by 10.8 percent to 7.1 billion.

“Co-op Bank Group is pleased to report a Profit Before Tax of Kshs. 8.15 Billion for the first quarter of 2023, representing a 4.67% growth compared to Kshs. 7.78 Billion recorded in the first quarter of 2022,” Co-op Bank CEO Gideon Muriuki said.

“This represents a Profit after Tax of Kshs. 6.1 Billion compared to Kshs. 5.8 Billion reported in 2022, a 5.2% growth,” Muriuki added.

“The strong performance by the Bank is in line with the Group’s strategic focus on sustainable growth, resilience, and agility.”

Similarly, operating costs increased from Sh9 billion to Sh9.8 billion by 8.8%.

Co-op Bank is the third-largest tier-1 financial institution in the nation, behind KCB and Equity Bank.

It mostly lends to Saccos, who form part of its biggest owners.

“The Group reports considerable efficiency gains from the various initiatives to record a Cost-to-Income Ratio of 46.3% in Q12023, a remarkable improvement from 59% in FY2014 when we began our Growth & Efficiency journey.”