Co-op Bank Records Historic Profit of Ksh40.3 Billion, Proposes Dividend of Ksh2.50 Per Share

The Co-operative Bank of Kenya has posted a record Profit Before Tax of Ksh40.3 billion for the full year ended December 31, 2025, marking the best performance in the bank’s history.

In results announced on Thursday, March 19,  the bank recorded a 15.8 per cent growth in Profit Before Tax, up from Ksh34.8 billion posted in the previous year. Profit After Tax also grew strongly, rising 16.9 per cent to Ksh29.75 billion from Ksh25.46 billion in 2024.

The strong performance has been attributed to robust growth across key financial metrics, including equity, assets, customer deposits, and income, under the bank’s 2025-2029 strategy.

According to Co-op, total assets grew by 11.32 per cent to Ksh827.4 billion, up from Ksh743.3 billion in 2024, while customer deposits rose 13.28 per cent to Ksh576.5 billion.

Net loans and advances increased 12.65 per cent to Ksh421.0 billion, reflecting growing credit appetite among both retail and business customers.

One area that recorded particularly strong growth was shareholders’ funds, which rose 13.82 per cent to Ksh165.5 billion, supported by a Ksh15.1 billion increase in retained earnings.

According to the statements, Return on Equity stood at 19.1 per cent, reflecting sustained value creation for shareholders across the year.

On the income side, Net Interest Income surged 21.99 per cent to Ksh62.85 billion, driving Operating Income up 13.93 per cent to Ksh91.89 billion.

Operating expenses increased 11.35 per cent, with the cost-to-income ratio before provisions standing at 46.3 per cent, a significant improvement from the 59 per cent recorded in 2014.

Following the strong results, the bank has proposed a final dividend of Ksh1.50 per share, bringing the total dividend for FY2025 to Ksh2.50 per share, after an earlier interim dividend of Ksh1.00 per share.

This represents a 67 per cent rise from the Ksh1.50 per share paid out in FY2024, translating to a total dividend payout of Ksh14.67 billion, compared to Ksh8.8 billion in the prior year.

The 15-million-member co-operative movement is expected to receive approximately Ksh9.47 billion of the total payout, subject to shareholder approval at the forthcoming Annual General Meeting.

The Group’s subsidiaries also delivered strong performances across the board.

Co-op Trust Investment Services Ltd grew Profit Before Tax by 142.3 per cent to Ksh936.2 million, with Funds Under Management reaching Ksh507.1 billion, making it one of the largest fund managers in the country.

Co-op Bancassurance Intermediary Ltd posted Profit Before Tax of Ksh1.49 billion, up 23.7 per cent, supported by deeper insurance penetration across the customer base.

Co-op Bank of South Sudan Ltd recorded a profit before tax of Ksh236.3 million, a remarkable recovery from Ksh11.1 million in 2024, while Kingdom Bank Ltd grew its pre-tax profit 5.3 per cent to Ksh1.13 billion.

Kingdom Securities Ltd delivered Profit Before Tax of Ksh129.7 million, up 74.8 per cent, driven by increased activity in the capital markets.

On the MSME and financial inclusion front, E-Credit disbursements in FY2025 reached Ksh72.96 billion, with Ksh10.43 billion directed to MSMEs. The E-Credit platform has now disbursed over Ksh500 billion since its inception.

In 2025, staff numbers also grew to 6,235, with 372 new jobs created during the year alone.