Co-operative Bank of Kenya posts 7.5 percent rise in pre-tax profit
The report, presented by Group Managing Director & CEO Dr Gideon Muriuki and Chairman John Murugu, OGW, revealed that the bank’s total assets grew to Kshs 743.2 billion — a 10.7 percent increase from Kshs 672.1 billion in 2023
NAIROBI, May 16, 2025 — The Co-operative Bank of Kenya demonstrated resilience and adaptability in 2024, posting a 7.5 percent increase in profit before tax to Kshs 34.8 billion, up from Kshs 32.4 billion in 2023. The figures are detailed in the lender’s 2024 Integrated Report, which presents a unified account of its financial, sustainability, and governance performance.
The report, presented by Group Managing Director & CEO Dr Gideon Muriuki and Chairman John Murugu, OGW, revealed that the bank’s total assets grew to Kshs 743.2 billion — a 10.7 percent increase from Kshs 672.1 billion in 2023. This growth reflects the continued strengthening of the bank’s balance sheet and its commitment to sustainable financial expansion.
Net loans and advances remained stable at Kshs 373.7 billion, compared to Kshs 374.2 billion the previous year, signalling a cautious approach to credit extension amid a challenging macroeconomic environment.
Meanwhile, the bank’s investment in government securities saw significant growth, rising 15.1 percent from Kshs 189 billion in 2023 to Kshs 217.6 billion in 2024. This strategic allocation boosted total interest income, which grew by 24.9 percent to reach Kshs 86.2 billion, up from Kshs 69.1 billion in 2023.
Customer deposits rose by 12.1 percent, totalling Kshs 506.1 billion compared to Kshs 451.6 billion the previous year — a strong vote of confidence in the bank’s positioning and service excellence. However, the rising cost of funds pushed interest expenses up to Kshs 34.7 billion in 2024, from Kshs 23.8 billion the previous year.
The Group’s borrowed funds stood at Kshs 55.4 billion, enhancing its capital base, while shareholder funds grew to Kshs 145.4 billion, driven by increased retained earnings and a reduction in mark-to-market losses.
Non-funded income accounted for 36.1 percent of total operating income, underlining the importance of revenue diversification.
“The Bank maintained a stable cost-to-income ratio of 47.2 percent in 2024, reflecting our continued focus on cost efficiency. Return on average equity (ROE) stood at 19.7% as we remained committed to balancing profitability with long-term strategic investment,” said Dr Muriuki.
The non-performing loan [NPL] ratio was reported at 16.8 percent in 2024, attributed to high interest rates and wider macroeconomic challenges. “To address this, the Bank has stepped up its credit growth strategies supported by the lower interest rate environment in 2025. These include proactive customer engagement, enhanced loan monitoring, and strengthened recovery efforts — guided by insights from Project Kilele and Project Connect & Build,” he added.
“Our financial strength is anchored in a diverse funding mix of customer deposits, shareholder equity, and borrowed funds. By year-end 2024, total assets stood at Kshs 743.2 billion, reinforcing our balance sheet trajectory,” noted Chairman Murugu.
Dividend announcement and AGM
Chairman Murugu further announced that the Board of Directors has recommended a dividend of Kshs 1.50 per ordinary share for approval by shareholders at the upcoming Annual General Meeting (AGM), subject to regulatory and shareholder consent. The AGM is scheduled to be held virtually on May 16, 2025.
Strategic outlook: 2025–2029
Looking ahead, Murugu outlined the bank’s strategic direction for the 2025–2029 period. The Corporate Strategic Plan builds on past achievements and aims to deepen market dominance in Kenya and the broader region. Key priorities include leveraging the strong co-operative movement, delivering exceptional customer experiences, enhancing operational efficiency, boosting staff productivity, and promoting sustainable and responsible business practices.
“Our achievements in 2024 are a testament to the dedication of our staff, the trust of our customers, and the support of our shareholders. We remain committed to driving sustainable growth, fostering innovation, and strengthening strategic partnerships,” he said.
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