Co-op Bank Q1 net profit rises to Ksh.6.9B on digital banking, lending gains

Co-operative Bank of Kenya has posted a Ksh.6.9 billion net profit for the first quarter of 2025, up from Ksh.6.6 billion in a similar period last year, representing a 5.3 per cent growth. The performance reflects strong momentum in digital banking, lending, and cost management.

The Group’s profit before tax rose to Ksh.9.63 billion, a 6.8 per cent increase from Ksh.9 billion in Q1 2024. Total operating income grew 12.8 per cent to Ksh.21.2 billion, driven largely by a 21.7 per cent rise in net interest income.

Group Managing Director and CEO Dr. Gideon Muriuki credited the performance to the bank’s ‘Soaring Eagle’ transformation strategy, which emphasises sustainable growth, operational efficiency, and digital innovation.

“This solid performance reflects the impact of our digitization strategy and deep customer relationships across the country,” said Dr. Muriuki.

The bank’s asset base expanded to Ksh.774.1 billion, up 8.3 per cent, while customer deposits rose 9.0 per cent to Ksh.525.2 billion. Net loans and advances stood at Ksh.384.5 billion, reflecting continued demand for credit across key sectors.

Co-op Bank said over 90 per cent of transactions are now conducted through alternative channels, including mobile and internet banking, ATMs, and over 15,500 Co-op Kwa Jirani agents. Its mobile wallet, Mco-op Cash, disbursed Ksh.19.1 billion in loans in Q1, while MSME lending through mobile platforms reached Ksh.3.04 billion.

This growing digital footprint helped reduce the cost-to-income ratio to 45.5 per cent, significantly down from 59 per cent in 2014.

The bank also expanded its reach with 15 new branches, including in Kibwezi, Luanda, Ruiru, Rumuruti, and Mombasa Road, bringing its network to 212 outlets, including five in South Sudan.

Subsidiaries contributed significantly to the Group’s performance. Kingdom Bank posted a profit before tax of Ksh.224.7 million, while Co-op Bancassurance earned Ksh.402.1 million. Co-op Trust Investment Services doubled its profit to Ksh.161.5 million, and Kingdom Securities recorded a 199.6 per cent profit surge to Ksh.41.8 million.

The Group also reaffirmed its commitment to sustainability. It was named Kenya’s Most Sustainable Bank at the 2024 Kenya Bankers’ Awards and continues to support over 11,700 students through its Co-op Bank Foundation.

Co-op Bank serves over 9.4 million account holders and leverages its strong ties to the 15-million-member co-operative movement, making it a key pillar in Kenya’s banking sector.n Digital, Lending Gains