Co-op Bank lauds Morgan Stanley listing as Profit hits Sh13bn
Business
By
Brian Ngugi
| Aug 15, 2024
Co-operative Bank of Kenya (Co-op Bank) has welcomed the listing of its stock by the New York-based Morgan Stanley index as it posted a 7 per cent jump in net earnings to Sh13 billion for the first six months of the year.
The MSCI Frontier Markets Index, created by Morgan Stanley Capital International (MSCI), tracks the performance of large and mid-cap listed companies, providing foreign investors with an up-to-date picture of the state of the Nairobi Securities Exchange (NSE), allowing them to make informed investment decisions.
The listing of Co-op Bank is a huge boost as MSCI indices serve as benchmarks for institutional investors looking to gain exposure to frontier markets, and the inclusion of Kenyan companies is expected to increase their visibility and attractiveness to global investors.
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The jump in the bank's half-year earnings was driven by growth in both interest and non-interest income, with total operating income rising 10.9 per cent to Sh39.2 billion.
Non-interest-funded income grew at the fastest pace, increasing by 11.2 per cent to Sh15.4 billion from Sh13.8 billion in a similar period last year.
The lender's net interest income grew by 10.7 per cent to Sh23.9 billion from Sh21.5 billion in 2023.
"The strong performance by the Bank is in line with the Group's strategic focus on sustainable growth, resilience, and agility delivering a Return on Equity of 22.1 per cent," said Co-op Bank Group Chief Executive Gideon Muriuki in a statement.
Mr Muriuki revealed Co-op Bank, which has a network of 199 branches including four in neighbouring South Sudan, plans to open new branches bucking the trend of branch closures by rival banks.
He said it plans to open an additional 15 outlets this year, with two at Imaara Mall on Mombasa Road-Nairobi and Ugunja in Siaya already opened.
Kingdom Bank, a subsidiary of the Bank, opened its 22nd branch in Meru County, being the third branch opened this year.
The SME-focused subsidiary contributed a profit before tax of Sh635.5 million in the period up 21.8 per cent from Sh521.9 million, riding on strong penetration of the bancassurance business, Mr Muriuki said.
Co-operative Bank of South Sudan opened its fifth branch in Wau, supporting business growth and financial inclusion in South Sudan.
"The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors," said Mr Muriuki.