By John Otini
Co-operative Bank Kenya’s after-tax profit rose 12.3 percent in the third quarter of 2025 to Sh21.6 billion, reflecting strong growth fueled by increased interest income and digital transformation efforts.
The bank declared an interim dividend of Sh1.00 per share for the nine months ending September 2025, signaling management’s confidence in the bank’s solid financial footing and future outlook. This interim dividend represents a significant milestone for shareholders and positions Co-op Bank favorably in terms of investor returns.
The impressive financial performance is also reflected in key metrics such as a return on equity of 19.4 percent, an increase in total assets by 8.6 percent to KSh 815.3 billion, and a 6.7 percent rise in customer deposits to Sh 548.6 billion.
Net loans and advances increased by 6.6 percent to Sh406.5 billion, while shareholder funds surged by 24.5 percent to Sh164.2 billion, bolstered by retained earnings that grew by Sh12.5 billion. Operating income for the period rose by 13.9 percent to KSh 67.4 billion, driven largely by a 22.8 percent increase in net interest income. Despite a 15.4 percent rise in operating expenses, the bank maintained a healthy cost-to-income ratio of 45.1 percent, a significant improvement from 59 percent in 2014 when the bank embarked on its growth and efficiency journey.
Dr. Gideon Muriuki, the Group Managing Director and CEO of Co-operative Bank, expressed optimism about the bank’s trajectory, stating, “Our sustained growth amidst challenging economic conditions is a testament to our strategic focus on sustainable banking, digital innovation, and deep community integration. We continue to build on our broad physical and digital footprint to enhance customer experience and support economic inclusion.”
He further emphasized the role of digital transformation, highlighting the launch of a revamped mobile banking platform and a multi-currency prepaid card to serve retail and business clients engaged in international trade and travel.
Digital banking remains at the forefront of the bank’s agenda, with over 90 percent of transactions now conducted through digital and alternative channels. The newly introduced Trade and Treasury System streamlines trade services, optimizing treasury performance, risk management, and competitiveness in both domestic and cross-border trade flows. The Co-op Bank App, an evolution of the previous Mco-opCash platform, now supports digital onboarding, reinforcing the bank’s commitment to customer-centric service delivery.
The bank’s expansive physical presence continues to grow, with 217 branches across Kenya, including 15 new branches and executive centers opened since mid-2024 in strategic locations such as Laare, Kibwezi, Eastleigh, and Eldoret. In addition, the bank operates 616 ATMs and Cash Deposit Machines, alongside over 16,000 Co-op Kwa Jirani agency banking outlets, extending financial services especially to remote areas and supporting Kenya’s 15-million-member cooperative movement.
Co-op Bank’s subsidiaries also contributed positively to the group’s financial health. Co-op Trust Investment Services Ltd, the fund management arm, reported funds under management at KSh 496.4 billion with a profit before tax of KSh 624 million, a 145 percent growth.
The bancassurance unit achieved a profit before tax of KSh 1.15 billion, while Kingdom Bank Ltd and Kingdom Securities Ltd reported profits of Sh820.2 million and KSh 89.9 million respectively. Co-op Bank of South Sudan delivered a restated profit of KSh 93.5 million, adjusted for hyperinflation.
The group’s commitment to environmental, social, and governance (ESG) leadership was recognized once again with Co-op Bank being named the Most Sustainable Bank in Kenya at the 2024 Kenya Bankers Sustainable Finance Catalyst Awards. The bank has also implemented a Climate Strategy Roadmap aimed at addressing climate risks and supporting United Nations Sustainable Development Goals.
