Co-op Bank posts Sh18.4 billion net profit in Q3 2023
FINANCIALS: Co-operative Bank has unveiled its financial results for the third quarter of 2023 with profit rising to Sh18.39 billion.
Profit after tax soared by 7.6 per cent during the first nine months of this year compared to Sh17.10 billion in the same quarter of the previous year.
The announcement brings a wave of insights into the bank’s performance, showcasing several key highlights that underline its resilience and growth in a dynamic financial landscape, amid tough economic times. The bank’s total assets witnessed a notable surge, recording a remarkable 6.3 per cent increase from Sh622 billion in Q3 2022 to Sh661.34 billion in the same period of 2023.
Co-op Bank Group CEO Gideon Muriuki said the substantial growth in assets suggests robust financial management and strategic investments by the bank.
“Sustainability is fully integrated into our business model that stands on the three pillars of Economic Sustainability, Social Sustainability and Environmental Stewardship,” he said.
Co-op Bank was named Overall Winner at the Kenya Bankers Association (KBA) 2023 Sustainable Finance Catalyst Awards. This is the fourth time in six years that it has been named overall winner, having also won the overall title in 2017, 2019 and last year.
The Awards were created to recognise institutions that practice sustainable finance which has a direct positive impact on the financial sector, the economy, the environment and the society at large. Customer deposits, a vital indicator of a bank’s stability, also experienced a modest uptick, rising by 0.2 per cent to reach Sh432.84 billion.
“As a bank that is predominantly owned by the 15 million-member Co-operative Movement that is represented in all regions of the country, we are inclusive by design, which has enabled us to not only deliver shared prosperity today but also helped us build an awareness and prudence to avoid participation in activities that risk putting future generations in jeopardy,” Muriuki said.
Despite the marginal increase, this demonstrates the bank’s ability to retain and attract deposits in a competitive market.
Total operating income for the third quarter of 2023 reached Sh53.41 billion, marking a commendable 2.3 per cent rise from Sh52.21 billion in the corresponding period last year. “The group records excellent efficiency gains from various initiatives to record a cost-to-income ratio of 46 per cent in Q3 2023 from 59 per cent in the full year 2014,” the CEO said.
Co-operative Bank’s return on average equity (ROAE) has shown resilience and improvement, reaching an impressive 17.61 per cent from 17 per cent.
This metric is a key measure of a company’s profitability relative to shareholders’ equity, and the upward trajectory reflects positively on the bank’s management efficiency and profitability.
Co-operative Bank’s performance in Q3 2023 is likely to enhance investor confidence and position the bank as a frontrunner in Kenya’s banking sector.