Co-operative Bank Of Kenya Ltd. · NSEKE:COOP
Co-operative Bank Of Kenya — Investor Presentation (March 2025)
45 slides from Co-operative Bank Of Kenya's investor presentation, March 2025
Slide 1: Investor Briefing FY 2024
Ge) CO-OPERATIVE BANK Investor Briefing FY 2024
Slide 2: A Transformational Bank
A Transformational Bank Largest Co-operative Bank in Africa - 15 Million Members Successful Universal Banking Model, Increased Dominance in Kenya Growth, Resilience and Agility Kshs. 743.2 Billion in Total Assets 5,863 Skilled, Motivated Staff Members 2
Slide 3: We are Growing
We are Growing Creating Value 3
Slide 4: Efficient, Profitable Business Model Growing Asset Base
Efficient, Profitable Business Model Group Financial Results FY 2024 34.8 Profit Before Tax (Kshs. B) 32.4 FY 2023 FY 2024 Growing Asset Base 743.2 Total Assets (Kshs. B) 671.1 FY 2023 FY 2024 FY2024 Group Financial Results 4
Slide 5: Group Structure
Group Financial Results FY 2024 Group Structure Co-operative Bank of South Sudan Ltd (51%) Co-op Bancassurance Intermediary Ltd (100%) 15M Member Co-operative Movement Co-optrust Investment Services Ltd (100%) Co-op Holdings Co-op Society Ltd (64.56% Strategic Ownership) Kingdom Securities Ltd (60%)
Slide 6: A Successful Universal Banking Model
A Successful Universal Banking Model Retail and Business Banking Corporate & Institutional Banking (Kshs.260.9 Billion Loan Book) (Kshs. 106.3 Billion Loan Book) Leasing: Co-operatives Banking Coop Bank Fleet Africa Ltd (Kshs. 36.5 Billion Loan Book) (Kshs.174.5 Mn PBT FY24) Funds under management I
Slide 7: Our Presence
Our Presence 16000+ 211 Branches Co-op Kwa Jirani Agents South Sudan 617 ATMs & Cash 16K Diaspora Banking Deposit Machines Customers (CDMs) Kenya 5,863 Staff Core Banking System 619 Sacco Front 24hr Contact Centre offices Branch Network FY2024 Group Financial Results 7
Slide 8: Resilience in our Regional Business: Co-operative Bank of South Sudan
Resilience in our Regional Business : Co-operative Bank of South Sudan FY 2023 FY 2024 10,580 10,347 7,639 7,201 4,024 3,465 Total Assets Total Deposits Loans And Advances FY 2023 FY 2024 2,003 1,992 1,531 1,240 5 Branches 453 516 291 11 5 Non-oil collection centers Owns 31% of CIC Africa Ltd- South
Slide 9: We are Resilient
We are Resilient Protecting Value 9
Slide 10: Robust Financial and Operational Foundations Driving Stability
Robust Financial and Operational Foundations Driving Stability Proactive Enterprise Risk Management Up to 51.3% of our loan Book is in Consumer banking Framework. which is low risk and performing well. Proactive Regulatory compliance Optimal risk spread with KShs.217.6 Bn in government securities. S
Slide 11: We are agile
We are agile Fast | Adaptable 11
Slide 12: Leveraging Digital Transformation and Agile Methodologies
Leveraging Digital Transformation and Agile Methodologies 92% of transactions on alternative channels enhancing operational efficiency. Core Banking system operational in Kenya (June 2023) & South Sudan (March 2024) enhancing innovation, customer experience & analytics Optimization of Omnichannel in
Slide 13: Increased Access to Finance with E-Credit
Increased Access to Finance with E-Credit Kshs. 76.7 Bn Disbursed YTD Cumulative Mcoop Cash Loan Customer Numbers ( In '000’) 12,786 10,727 Kshs. 428.8Bn Disbursed since 8,774 inception. 6,577 4,641 % CONTRIBUTION TO YTD DISBURSEMENTS 2,924 1,389 388 694 28 183 18% FY 2014 FY2015 FY 2016 FY2017 FY20
Slide 14: Growing Co-op Kwa Jirani Agency Banking
Group Financial Results FY 2024 Growing Co-op Kwa Jirani Agency Banking Total No. of Transactions Deposits Generated by Agents Transaction Value distribution (%) (Millions) (Ksh.Bn) FY 2023 FY 2024 29.1 26.2 153 156.3 64.6% 26.9% 63.7% 29.1% 8.5% 7.2% FY 2023 FY 2024 FY 2023 FY 2024 Deposits Withdra
Slide 15: Economic Highlights
(Ge) CO-OPERATIVE BANK BANK We are you Economic Highlights
Slide 16: Summary Of Economic Outcomes, Outlook & Key Risks
Summary Of Economic Outcomes, Outlook & Key Risks • In 2024, the global economy was characterized by slow growth amid falling interest rates as inflation moderated. • In 2025, we expect a slight pick-up in activities largely driven by the US, South Asia particularly India, improved prospects in the
Slide 17: Monetary Policy Has Room To Stimulate The Economy Further In 2025
Monetary Policy Has Room To Stimulate The Economy Further In 2025 18.0 KEY RISKS TO THE OUTLOOK 16.0 • Geopolitical tensions, • Trade policy uncertainty, 14.0 • Global commodity prices 12.0 could take a turn on the upside, 10.0 • Global financing conditions 8.0 could tighten • Weather related shocks
Slide 18: Corporate Strategic Plan 2020-2024
2020-2024 Corporate Strategic Plan 18
Slide 19: Purpose, Vision, Mission
PURPOSE VISION MISSION A financial institution predominantly owned by To be the dominant bank in Kenya and the To offer a wide range of innovative financial solutions leveraging the Kenyan Co-operative movement, region, riding on the unique Co-operative Model on our heavy investment in multi-channel
Slide 20: "Good to Great" Strategy 2025-2029
“Good to Great” Strategy 2025-2029 CORPORATE STRATEGIC PLAN The Board of Directors approved the Good to Great Strategy that will guide the Group’s activities for the next 5 years. This Plan ushers in a period of growth that will see the Bank’s asset size grow to over Kshs.1 Trillion. The key objecti
Slide 21: "Soaring Eagle" Transformation
“Soaring Eagle” Transformation Progressive gains for efficiency and growth. 1. Branch Transformation 2. MSME Transformation 3. Sales Force Effectiveness 4. Shared Services & Digitization “The Digital Bank” 5. NPL Management & Credit Processes 6. Cost Management 7. Data Analytics 8. Staff Productivit
Slide 22: Branch, MSME Transformation and Sales Force Effectiveness
Branch Transformation MSME Transformation 92% of total transactions are on 66,100 Customers trained Alternative Channels. 235,617 customers onboarded MSME E-Credit Gold, Silver & Bronze • A key focus area, Kshs. 428.8B disbursed to Date. NFS • Kshs. 6.4 Billion disbursed per month • 122 Webinars on
Slide 23: NPL Management, Data Analytics, Cost Management
NPL Management & Credit Processes Cost Management Continuous Process improvement for enhanced Turn Around Time on all loan applications. Efficiency gains 62.6% 57.9% Proactive early delinquency & NPL management through Connecting with our customers, collecting and offering customer- 59.0% centric so
Slide 24: Environmental Social and Governance (ESG)
Environmental Social and Governance (ESG) 24
Slide 25: Impact driven by our dedicated ESG Focus
Impact driven by our dedicated ESG Focus with an enhanced ESG Policy Framework Affordable Basic MSME Financing Renewable Energy Infrastructure 12.3 Billion Access to Essential Green Buildings Food Security Services Employment Generation Youth Banking Women Banking Sustainable Water & Sustainable Foo
Slide 26: Sustainability Awards
Sustainability Awards Most Sustainable Bank in Kenya Most Innovative Bank Best in financing Commercial Clients Best in Financing MSMEs 1st Runners up – Best In promoting People with Disability (PWD) 2nd Runners Up – Best in Promoting Gender Inclusivity 26
Slide 27: Award-Winning Brand
Award-Winning Brand ASIAN BANKER GLOBAL MEA AWARDS GLOBAL FINANCE - WORLD’S BEST BANK AWARDS 2024 Best SME Bank in Kenya - 2024 Best Bank in Kenya Best Omnichannel Technology Implementation - 2023 FT AWARDS 2024 KBA CUSTOMER SATISFACTION SURVEY 2022 & 2023 Bank of the Year (Kenya) Best Overall in Sa
Slide 28: Group Financial Performance
Group Financial Performance
Slide 29: Strong Financial Position (Kshs. Billions)
Group Financial Results FY 2024 Strong Financial Position Total Assets Net Loan book 374.2 373.7 (Kshs. Billions) 743.2 671.1 FY 2023 FY 2024 FY 2023 FY 2024 Total Deposits Shareholder's Funds 508.9 145.4 113.6 456.1 FY 2023 FY 2024 FY 2023 FY 2024 29
Slide 30: Strong Financial Position (Kshs. Billions)
Strong Financial Position (Kshs. Billions) Kshs. Billions FY 2024 FY 2023 % Growth Total Assets 743.2 671.1 10.7% Net Loan book 373.7 374.2 -0.1% Government Securities 271.6 189.0 15.1% Total Deposits 508.9 456.1 11.6% Borrowed Funds 55.4 67.3 -17.7% Shareholder's Funds 145.4 113.6 28.0% FY2024 Grou
Slide 31: Diversified loan book by segment
Group Financial Results FY 2024 Loan Book By Segment Diversified loan book FY 2023 FY 2024 • Diversified across segments. 46.8% 48.0% • Highest book is in Personal Banking; • Check off; deductions are done at source. • Diversified across various 28.5% Government/quasi-government 26.3% employees. • A
Slide 32: Diversified loan book by sector
Group Financial Results FY 2024 Loan Book by Sector 0.5% Diversified loan book Tourism, Restraurant & Hotels 0.7% Building & construction 0.8% 0.9% Agriculture 2.0% • Diversified across sectors 1.7% Energy & Water 1.2% 1.7% • 51.3% in Personal consumer which 3.4% is performing well Manufacturing 3.4
Slide 33: Portfolio Trends: Sector NPL
Group Financial Results FY 2024 FY 2024 FY 2023 Sector Size 6.0% Energy & Water 4.6% 1.2% 4.2% Financial services Portfolio Trends: Sector 6.4% 9.3% 7.4% NPL Personal consumer 7.0% 51.3% 29.0% Transport & Communication 15.2% 8.9% Low relative exposure Manufacturing 14.2% 3.4% in high-risk sectors 18
Slide 34: Supporting NPL Management
Group Financial Results FY 2024 NPL Ratio FY 2023 FY 2024 16.8% 16.6% 16.4% 16.1% 15.7% Supporting NPL 14.8% Management; • Proactive Credit Management Strategies. • Business Growth. • Consumers and Businesses resilience amid tight economic environment. Industry Group Bank 34
Slide 35: Cost of risk of 2.3% in FY 2024
Cost of risk of 2.3% in FY 2024. Cost of Risk IFRS Coverage Coverage with security 2.3% 69.2% 105.4% 105.9% 63.9% 1.7% FY 2023 FY 2024 FY 2023 FY2024 FY 2023 FY 2024 FY2024 Group Financial Results 35
Slide 36: Well-diversified Liability Portfolio
Well-diversified Liability Portfolio FY 2024 FY 2023 CASA VS TERM DEPOSITS 8.0% Sacco and Agri-Business 8.4% 9.7% Corporate banking 20.4% 11.5% 45% Government Banking 7.7% 55% 19.3% Institutional Banking 11.1% 24.7% MSME 26.0% 26.8% Retail 26.4% Current & Savings Deposits Term & Call Deposits FY2024
Slide 37: Optimally balanced Kenya Shilling Asset & Funding Book
Optimally balanced Kenya Shilling Asset & Funding Book FUNDING: ASSETS: LOCAL VS. FOREIGN CURRENCY LOCAL VS. FOREIGN CURRENCY LCY Deposits FCY Deposits Local Currency Foreign Curency LCY Borrowing FCY Borrowing 0.5% 14.5% 6.6% 12.4% 80.5% 85.5% FY2024 Group Financial Results 37
Slide 38: Asset and Funding Mix
Asset and Funding Mix FY 2024 FY 2023 8.7% Net Loans 7.2% Net Loans Asset Categories 8.9% 11.7% Government Government Securities Securities 50.3% Cash and Cash Cash and Cash 28.2% 55.8% 29.3% Equivalent Equivalent Other Assets Other Assets FY 2024 FY 2023 4.5% 5.1% Funding Categories Deposits Deposi
Slide 39: Strong Liquidity to Support Investments
Strong Liquidity to Support Investments Liquidity ratio Total Loans to Total Deposits Loans /(Deposits+Borrowed Funds) 59.9% 82.0% 71.5% 66.2% 73.4% 52.0% FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 FY2024 Group Financial Results 39
Slide 40: Capital buffers for sustainable growth
Capital buffers for sustainable growth Core capital to Total Deposits Core capital to Total risk Total capital to Total risk weighted assets weighted assets 23.4% 24.2% 18.2% 18.3% 22.5% 21.2% 14.5% 14.5% 10.5% 10.5% 8.0% 8.0% FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 Total capital to Total ri
Slide 41: Sustainable Profitability
Sustainable Profitability Kshs. Billions FY 2024 FY 2023 YoY Change Total Interest Income 86.25 69.07 24.9% Total Interest Expenses 34.73 23.84 45.7% Net Interest Income 51.52 45.23 13.9% Fees and commissions on loans and advances 11.03 12.25 -10.0% Other Fees and commissions 12.07 10.13 19.2% Forei
Slide 42: Subsidiary Contribution
Subsidiary Contribution FY 2024 FY 2023 Growth Growth KShs KShs KShs % Co-operative Bank of Kenya Ltd 31,303,207 29,616,456 1,686,752 5.7% Co-operative Bank of South Sudan Ltd 11,065 291,299 - 280,234 -96.2% Co-opTrust Investment Services Ltd 386,445 226,021 160,423 71.0% Co-op Bancassurance Interme
Slide 43: Key Ratios
Group Financial Results FY 2024 Ratio FY 2024 FY 2023 Key Ratios RoAA 3.60% 3.63% RoAE 19.7% 21.0% EPS 4.34 3.95 Ave Return of Interest Earning Assets 13.9% 12.4% NIM on Loans 8.5% 7.8% NIM on Interest Earning Assets 7.6% 7.6% CIR Group (with provisions) 57.9% 55.3% CIR Group (without
Slide 44: Dividend Payment
Dividend Payment The Co-operative Bank Group continues to showcase solid financial performance. Supported by the 2025-2029 Good to Great Corporate Strategic Plan, the Bank will continue to pursue strategic initiatives that focus on resilience and growth in the various sectors of the economy. The Ban
Slide 45: Thank You
THANK YOU [SE] CO-OPERATIVE BANK
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