Co-op Bank Reports 15.8% Profit Growth to KSh 40.3 Billion for FY2025

The Co-operative Bank of Kenya has posted a strong financial performance for the year ended December 31, 2025, recording a Profit Before Tax of KSh 40.3 billion, up from KSh 34.8 billion in 2024, representing a 15.8 per cent growth.

Profit After Tax rose by 16.9 per cent to KSh 29.75 billion, compared to KSh 25.46 billion the previous year, marking the bank’s best-ever performance. The results underscore gains made under its 2025–2029 Good to Great Strategy and the “Soaring Eagle” Transformation Agenda.

The bank has proposed a final dividend of KSh 1.50 per share, bringing the total dividend for FY2025 to KSh 2.50 per share, following an interim payout of KSh 1.00.

This represents a 67 per cent increase from the KSh 1.50 paid in FY2024, with the total dividend payout rising to KSh 14.67 billion from KSh 8.8 billion.

Of this, the 15-million-member co-operative movement is expected to receive approximately KSh 9.47 billion, subject to shareholder approval at the forthcoming Annual General Meeting.

Key performance indicators showed sustained growth, with Return on Equity at 19.1 per cent, while total assets grew by 11.32 per cent to KSh 827.4 billion.

Customer deposits increased by 13.28 per cent to KSh 576.5 billion, and loans and advances rose by 12.65 per cent to KSh 421.0 billion. Borrowed funds stood at KSh 61.7 billion, up 11.35 per cent, while shareholders’ funds grew by 13.82 per cent to KSh 165.5 billion, supported by a KSh 15.1 billion increase in retained earnings.

Net interest income increased by 21.99 per cent to KSh 62.85 billion, driving operating income up by 13.93 per cent to KSh 91.89 billion. Operating expenses rose by 11.35 per cent, with the cost-to-income ratio improving to 46.3 per cent, compared to 59 per cent in 2014 when the bank began its Growth and Efficiency journey.

The Group continued to strengthen its digital leadership, with over 90 per cent of all customer transactions processed through alternative delivery channels, including mobile, internet, and USSD platforms.

Its distribution network includes over 16,000 Co-op Kwa Jirani agents, 620 ATMs and cash deposit machines, and a 24-hour contact centre, ensuring accessibility across all customer segments.

The bank maintained a strong physical presence with 222 branches, comprising 189 in Kenya, 6 in South Sudan, and 27 under Kingdom Bank, supported by 625 SACCO front offices.

Its customer base grew to over 9.4 million account holders, including more than 22,000 diaspora customers, while staff numbers increased to 6,235, reflecting the creation of 372 new jobs in 2025.

During the year, the bank enhanced its digital capabilities, including the launch of the Co-op Bank App, now integrated with investment and bancassurance services. It also introduced a multi-currency prepaid card to support retail and business clients engaged in trade and international travel, reinforcing its position as the largest issuer of Visa cards in the country.

In advancing financial inclusion, the bank disbursed KSh 72.96 billion in E-Credit, with KSh 10.43 billion directed to MSMEs. Since inception, the platform has disbursed over KSh 500 billion, highlighting its scale.

The bank has onboarded over 259,000 MSMEs and supported more than 71,000 businesses through training, with MSMEs accounting for 16.8 per cent of the loan book and 23.4 per cent of deposits.

The Group’s subsidiaries also posted strong performance. Co-op Trust Investment Services recorded KSh 507.1 billion in funds under management and a 142.3 per cent increase in profit, while Co-op Bancassurance reported a 23.7 per cent growth.

Co-op Bank South Sudan posted KSh 236.3 million in profit, Kingdom Bank recorded KSh 1.13 billion, and Kingdom Securities reported KSh 129.7 million, representing 74.8 per cent growth.

On sustainability, the bank advanced its ESG agenda, aligning with global frameworks such as IFRS S1 and S2 and the Kenya Green Finance Taxonomy.

Through the Co-op Bank Foundation, over 11,834 students have benefited from scholarships, while 3,879 co-operative advisory mandates have been supported, strengthening enterprise development and community impact.

The Group also received multiple accolades, including Product Innovation of the Year at the IFC Global SME Finance Forum Awards 2025, the Financial Institution Award at the Energy Management Awards, and two platinum awards at the Infosys Finacle Innovation Awards 2025 for Transformation Excellence and ESG-Led Innovation. It also won the ESG Reporting award at the FiRe Awards 2025.

Group Managing Director and CEO Dr. Gideon Muriuki said the bank remains focused on delivering sustainable growth, anchored on a strong digital platform, an extensive distribution network, and deep integration within Africa’s largest co-operative movement, which has over 15 million members.