Co-op Bank, Equity Group, and KCB posted strong profits in 2022, fueled by digital growth, loan expansion, and investor confidence.
In the nine months ending September 2022, Co-operative Bank of Kenya recorded the highest percentage growth in net profit, outpacing rivals Equity Group Holdings PLC and Kenya Commercial Bank (KCB) Group.
Co-op Bank reported a 47% jump in net profit to KSh 17 billion (US$138.98 million), up from KSh 11.6 billion (US$94.83 million) the previous year.
“The performance delivers a competitive return on equity of 23% to our shareholders,” said Gideon Muriuki, CEO of Co-op Bank, during an investor briefing on November 17, 2022, in Nairobi. “The strong performance aligns with our focus on sustainable growth, resilience, and agility.”
The bank’s cost-to-income ratio improved to 45.8%, down from 49.3% in 2021 and a major improvement from 59% in 2014, when it launched its digitization strategy.
“Through our digital channel strategy, the bank has successfully moved 94% of all customer transactions to alternative channels—mobile banking, internet banking, ATMs, contact centre, and Co-op Kwa Jirani agents,” Muriuki added.
Co-op Bank, Kenya’s third-largest by assets, grew its total assets by 5% to KSh 622.1 billion (US$5.09 billion), from KSh 592.9 billion (US$4.85 billion) a year earlier.
Equity Group Holdings’ Performance
Equity Group’s net profit rose 26.6% to KSh 33.35 billion (US$272.83 million), up from KSh 26.3 billion (US$215.16 million). The gains were supported by surging fee income, forex trading, and interest from government securities.
- Fee and commission income grew 28% to KSh 26.74 billion (US$219.18 million).
- Forex trading income jumped 57% to KSh 8.89 billion (US$72.86 million).
- Investment in government securities yielded KSh 29.57 billion (US$242.37 million), a 43% increase.
Equity’s total assets grew 15.2%, and customer deposits surpassed KSh 1 trillion for the first time. Loans to customers rose 21% to KSh 673.9 billion (US$5.51 billion), largely driven by the Equity Bank Congo unit, which posted a 50% growth in its loan book to KSh 151.6 billion.
“Continuous pursuit of efficiency gains and our transformation strategy has repositioned us for value creation,” said CEO Dr. James Mwangi during an investor briefing on November 22, 2022.
KCB Group’s Earnings
KCB, Kenya’s second-largest lender by assets, saw its net profit rise 21.4% to KSh 30.6 billion (US$250.34 million), up from KSh 25.2 billion (US$206.16 million) in 2021. This was driven by increases in net interest income and non-funded income, especially foreign exchange earnings and loan fees.
“We’re seeing strong momentum in corporate and retail banking,” said Paul Russo, CEO of KCB Group, during an investor briefing on November 15, 2022.
- KCB’s total assets rose 13.7% to KSh 1.28 trillion, driven by expanded lending and deposits.
- Net loans increased 16.4% to KSh 758.8 billion (US$6.21 billion).
- Customer deposits grew 7.4% to KSh 922.3 billion (US$7.55 billion).
KCB operates in six countries and maintains a representative office in Ethiopia.
KCB Group Chairman Andrew Wambari Kairu credited their focus on cost efficiency, digital capabilities, and customer-centric strategies for enabling consistent growth, even amid currency depreciation and high inflation in key markets.
Keywords:
Co-op Bank profit growth 2022, Equity Group Holdings performance, KCB Group net profit increase, Kenya banking sector, CEO quotes investor briefings