Co-operative Bank of Kenya has announced a dividend payout of Ksh 8.8 billion to its shareholders following a 9.8% rise in net profits. The impressive growth was primarily driven by a double-digit increase in interest income, highlighting the bank’s resilience and strong financial performance.
Despite a slight dip in net loans and advances, which stood at Ksh 373.7 billion compared to Ksh 374.2 billion in 2023, the bank managed to grow its total operating income significantly. The lender recorded a 12.5% increase in total operating income, rising from Ksh 71.7 billion to Ksh 80.6 billion. This was supported by a 10.1% growth in non-interest income to Ksh 29.1 billion and a 13.9% rise in interest income, which reached Ksh 51.5 billion.
However, the bank’s total operating expenses also saw an equivalent 12.5% increase, reaching Ksh 80.6 billion. This rise was attributed to strategic investments aimed at strengthening its digital banking capabilities and expanding its branch network. In line with this expansion, Co-operative Bank Group Managing Director Gideon Muriuki revealed that the lender plans to open 15 new branches this year, further cementing its presence across the country.
The increase in branch network throughout 2024 resulted in a higher staff count, which grew from 5,400 to 5,863 employees by the end of the year. Consequently, staff costs rose from Ksh 16.7 billion to Ksh 18.3 billion, reflecting the bank’s commitment to enhancing service delivery through a larger workforce.
Despite this expansion, Co-op Bank has remained steadfast in its digital transformation journey. Muriuki noted that 92% of customer transactions have now migrated to alternative delivery channels such as ATMs, mobile and internet banking, and the expansive Co-op kwa Jirani agency network, which boasts over 16,000 agents across the country.
The proposed dividend payout of Ksh 8.8 billion will be distributed at a rate of Ksh 1.50 per share, offering a substantial reward to shareholders. This move underscores Co-op Bank’s financial strength and its commitment to delivering value to investors while maintaining an aggressive expansion strategy.
