Co-op Bank shatters records with $197.1 million profit under Gideon Muriuki

Key Points

• Co-op Bank posted a record Ksh25.5 billion ($197.13 million) profit in 2024, up 9.91%, driven by higher income and improved efficiency.
• Total assets surged 10.7% to Ksh743.2 billion ($5.74 billion), with customer deposits rising 12.1% to Ksh506.1 billion ($3.91 billion).
• Co-op Bank proposed a Ksh8.81 billion ($68.04 million) dividend payout, pending approval at its Annual General Meeting on May 16, 2025.

Co-operative Bank Group (Co-op Bank), led by Kenyan banking magnate Gideon Muriuki, has delivered its strongest financial performance yet, closing the 2024 fiscal year with a record profit of Ksh25.5 billion ($197.13 million).

The bank’s financial results show a 9.91-percent increase in profit from Ksh23.19 billion ($174.69 million) the previous year. The growth was driven by higher income and improved efficiency, reinforcing Co-op Bank’s position as one of Kenya’s top financial institutions.

Co-op Bank's growth in income and assets

Total operating income grew 12.5 percent to Ksh80.6 billion ($622.86 million), up from Ksh71.7 billion ($554.1 million), driven by strong growth in both interest and non-interest revenue. Net interest income rose 13.9 percent to Ksh51.5 billion ($397.97 million), supported by increased lending, while non-interest income climbed 10.1 percent to Ksh29.1 billion ($224.87 million).

Cost management efforts continued to pay off, with the cost-to-income ratio improving to 47.2 percent in FY 2024, down from 59 percent a decade ago. The steady decline reflects the success of ongoing efficiency and transformation initiatives.

The group’s total assets rose 10.7 percent to Ksh743.2 billion ($5.74 billion), compared to Ksh671.1 billion ($5.19 billion) a year earlier. Customer deposits climbed 12.1 percent to Ksh506.1 billion ($3.91 billion), reinforcing the bank’s strong liquidity position. Meanwhile, shareholders’ funds surged 28 percent to Ksh145.4 billion ($1.12 billion), supported by Ksh16.7 billion ($129.06 million) in retained earnings.

Co-op Bank’s dividend payout tops $68 million

Co-op Bank, a major player in East Africa's financial sector, boasts several subsidiaries including Kingdom Securities, Co-op Trust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and the Co-operative Bank of South Sudan.

Muriuki, who was instrumental in the bank’s expansion, owns a two-percent stake in the leading financial services group. This stake, which is now worth Ksh1.89 billion ($14.61 million), has cemented his position among the richest investors on the Nairobi Securities Exchange.

With the bank posting strong financial results, the board has proposed a final dividend of Ksh1.50 ($0.0116) per share, totaling Ksh8.81 billion ($68.04 million) for the year ending December 31, 2024. The payout, pending regulatory and shareholder approval, is expected to be distributed after the Annual General Meeting on May 16, 2025.