Co-operative Bank of Kenya has reported a solid financial performance for the third quarter of 2024, posting a net profit of Sh19.2 billion.

This marks a 4.4 per cent increase from Sh18.4 billion recorded in the same period in 2023, driven by its ongoing digital transformation and consistent growth across key sectors.

In its latest quarterly report, published on November 14, the bank revealed that profit before tax reached Sh26.8 billion, up 8.5 per cent from the previous year's Sh24.7 billion.

This robust growth is attributed to Co-op Bank's expanding digital presence and its ability to offer sustainable financial solutions that resonate with the changing needs of its customer base.

Total assets surged to Sh750.8 billion, representing a 13.5 per cent growth from Sh661.3 billion last year.

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In addition, customer deposits swelled by 18.7 per cent, reaching Sh514.0 billion compared to Sh432.8 billion in 2023. These figures underline the bank's increasing popularity and trust among its customers.

The bank's focus on growing its loan book also paid off, with net loans and advances climbing to Sh381.3 billion, a modest increase from Sh378.1 billion the previous year. However, external funding from development partners decreased slightly to Sh58.0 billion from Sh65.6 billion in 2023.

A major highlight of the report was the 22 per cent increase in shareholders' funds, which now stand at Sh131.8 billion, up from Sh108.1 billion in 2023. This growth was largely driven by retained earnings of Sh16.3 billion, which have been reinvested to support further expansion.

Operating income also saw a strong performance, growing 10.8 per cent from Sh53.4 billion to Sh59.2 billion. This increase was powered by a 12.3 per cent rise in net interest income, which grew from Sh32.8 billion to Sh36.9 billion. Non-interest income also rose by 8.2 per cent, from Sh20.6 billion to Sh22.3 billion.

At the heart of the bank's success is its Mco-op Cash Mobile wallet, which has continued to drive non-funded income streams. With Sh55.7 billion in loans disbursed during the quarter—an average of Sh6.2 billion per month—the platform has cemented its role as a key revenue generator.

The bank’s digital innovation also extends to its support for MSMEs, with 231,200 customers now benefiting from the MSME packages launched in 2018. To date, Sh11 billion has been disbursed to small and medium businesses through the mobile e-credit solution, which now makes up 15.9 per cent of the bank’s total loan book.

The bank's footprint continues to grow, with a network of 204 branches, including five in South Sudan. As part of its expansion strategy, 15 additional outlets are slated to open this year, eight of which are already operational.

Co-op Bank's reach is further extended through its vast cooperative movement, which now boasts over 15 million members—the largest in Africa.

Subsidiaries also contributed significantly to the bank's performance. Co-op Bancassurance Intermediary Ltd, benefiting from an expanding bancassurance portfolio, posted a pre-tax profit of Sh824.3 million.

Meanwhile, Co-operative Bank of South Sudan, despite the challenges posed by hyperinflation and currency devaluation, managed a pre-tax profit of Sh434.7 million, translating to a Sh33.8 million profit attributable to currency adjustments.

Co-op Trust Investment Services Ltd also performed admirably, with a 65 per cent increase in profit before tax, climbing from Sh154.5 million in 2023 to Sh254.9 million.

The company currently manages Sh299.6 billion in assets under management. Kingdom Bank Limited, focused on serving MSMEs, posted a 18.1 per cent rise in profits, reaching Sh929.2 million compared to Sh786.6 million in the same period last year.

The bank has also significantly upgraded its digital infrastructure, adopting the latest version of Finacle from Infosys as its core banking system.

This move has facilitated a smooth transition to alternative banking channels, with over 93 per cent of customer transactions now being processed through mobile, internet banking, ATMs, cash deposit machines, and a 24-hour contact centre.

The bank’s network of over 16,000 Co-op kwa Jirani agents further enhances its service delivery, reaching customers in even the most remote areas.

With its continued focus on digital innovation, expansion, and a customer-centric approach, Co-op Bank appears well-positioned to maintain its growth trajectory and deliver value to its shareholders and the broader Kenyan economy.