Co-op Bank net profit rises to Ksh.29.75 billion in record performance

Co-operative Bank of Kenya has posted a record net profit of Ksh.29.75 billion for the financial year ended December 2025, marking a 16.9 per cent increase from Ksh.25.46 billion reported in 2024.

The strong growth in profit after tax was supported by a solid rise in earnings, with profit before tax climbing 15.8 per cent to Ksh.40.3 billion, up from Ksh.34.8 billion the previous year.

This performance represents the highest in the bank’s history, underpinned by gains from its ongoing strategic transformation agenda.

The lender attributed the improved profitability to growth in net interest income, expansion in its loan book, and increased customer deposits, alongside continued investment in digital banking channels.

Net interest income rose significantly by 21.99 per cent to Ksh.62.85 billion, providing a major boost to total operating income, which grew 13.93 per cent to Ksh.91.89 billion.

At the same time, operating expenses increased at a slower rate of 11.35 per cent, enabling the bank to maintain efficiency gains, with the cost-to-income ratio standing at 46.3 per cent.

The bank’s balance sheet also showed robust growth, with total assets increasing by 11.32 per cent to Ksh.827.4 billion.

Customer deposits grew by 13.28 per cent to Ksh.576.5 billion, while loans and advances expanded by 12.65 per cent to Ksh.421 billion, reflecting sustained demand for credit.

Shareholders’ funds rose 13.82 per cent to Ksh.165.5 billion, supported by a Ksh.15.1 billion increase in retained earnings, highlighting the bank’s strong capital position.

Following the improved profitability, the bank has proposed a total dividend payout of Ksh.2.50 per share, up from Ksh.1.50 in the previous year, translating to a total payout of Ksh.14.67 billion. Of this, the co-operative movement, which comprises about 15 million members, is expected to receive approximately Ksh.9.47 billion.

Digital banking continued to play a key role in driving earnings, with over 90 per cent of all customer transactions conducted through alternative delivery channels such as mobile, internet, and agency banking.

The bank also expanded its digital offerings, including enhancements to its mobile app and the launch of a multi-currency prepaid card targeting retail and business clients engaged in international trade.

The lender further deepened its support for small businesses through its MSME and digital credit platforms. During the year, it disbursed Ksh.72.96 billion in digital loans, with Ksh.10.43 billion directed to micro, small, and medium enterprises to support working capital needs.

Subsidiaries also contributed to the strong bottom line, with Co-op Trust Investment Services, Bancassurance, and Kingdom Securities all recording notable growth in profits.

Co-op Bank Group Managing Director and CEO Dr Gideon Muriuki said the results reflect the resilience of the bank’s business model and its continued focus on delivering sustainable growth.

Looking ahead, the bank expects its diversified business model, strong digital footprint, and deep integration within the co-operative movement to sustain profitability and support long-term value creation for shareholders.