Co-op Bank register Sh22billion full year net profit

The Co-operative Bank has posted a full-year 2022 profit of Sh22billion derived from a pretax profit of Sh29.4billion.

Effectively, the Chief Executive Gideon Muriuki led bank increased its dividends by half as recommending a dividend of Sh1.50 per share, a 50 per cent increase on the Sh1 paid out last year.

This is seen as a major boost to the co-operative societies, the bank’s majority shareholders.

“The strong performance has led to a sustained increase in shareholder value as reflected in the competitive return on equity of 21.2 per cent.” Muriuki has said today.

The group’s full-year profit after tax grew by 33.3 per cent to Sh22 billion.

This is up from Sh16.5 billion reported in a similar period in 2021, as the lender continued to ride on its digital banking and growth strategy to deliver a strong performance.

Profit before tax grew to Sh29.4 billion in the year, up from Sh22.6 billion the previous year.

The performance has led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 21.2 per cent.

The Group’s loan book grew by 9.4 per cent, extending Sh339.4 billion in net loans and advances to customers, up from Sh310.2 billion in 2021.

Deposits hit Sh607.2 billion, up from Sh579.8 billion in the same period the previous year.

The bank operating income grew by 17.9 per cent from Sh60.4 billion to Sh71.3 billion.

Total non-interest income rose by 32.7 per cent from Sh19.4 billion to Sh25.7 billion.

Net interest increased at a slower rate at 10.9 percent from Sh41 billion to Sh71.3 billion.

The lender’s expenses increased by 10.9 per cent from Sh38.1 billion to Sh42.2 billion.