The Co-operative Bank of Kenya has reported a record net profit of Ksh.29.75 billion for the financial year ended December 2025, representing a 16.9 per cent increase from Ksh.25.46 billion posted in 2024.
The lender’s performance marks the highest profitability in its history, driven by sustained growth in earnings and the successful execution of its strategic transformation agenda.
Earnings and Revenue Growth
Profit before tax rose by 15.8 per cent to Ksh.40.3 billion, up from Ksh.34.8 billion the previous year. The growth was largely supported by a significant increase in net interest income, which climbed 21.99 per cent to Ksh.62.85 billion.
Total operating income also expanded by 13.93 per cent to Ksh.91.89 billion, reflecting improved revenue streams across the bank’s core business segments.
Despite the expansion, operating expenses grew at a slower rate of 11.35 per cent, allowing the bank to maintain efficiency gains. The cost-to-income ratio stood at 46.3 per cent, underscoring disciplined cost management.
Strong Balance Sheet Expansion
The bank’s balance sheet recorded robust growth across key indicators:
- Total assets increased by 11.32 per cent to Ksh.827.4 billion
- Customer deposits rose 13.28 per cent to Ksh.576.5 billion
- Loans and advances grew 12.65 per cent to Ksh.421 billion
Shareholders’ funds also strengthened, rising 13.82 per cent to Ksh.165.5 billion, supported by a Ksh.15.1 billion increase in retained earnings.
Dividend Payout and Shareholder Returns
Following the improved financial performance, the bank has proposed a dividend of Ksh.2.50 per share, up from Ksh.1.50 in 2024. This translates to a total payout of Ksh.14.67 billion, with the co-operative movement comprising approximately 15 million members set to receive about Ksh.9.47 billion.
Digital Banking Drives Growth
Digital channels continued to play a central role in the bank’s performance, with over 90 per cent of customer transactions conducted through mobile, internet, and agency banking platforms.
The bank enhanced its digital ecosystem through upgrades to its mobile application and the introduction of a multi-currency prepaid card, targeting individuals and businesses engaged in international trade.
Support for SMEs and Credit Expansion
The lender also deepened its support for small businesses through MSME-focused initiatives and digital lending platforms. During the year, it disbursed Ksh.72.96 billion in digital loans, including Ksh.10.43 billion directed to micro, small, and medium enterprises to support working capital needs.
Subsidiary Contributions and Outlook
Subsidiaries, including Co-op Trust Investment Services, Bancassurance, and Kingdom Securities, recorded notable profit growth, further strengthening the group’s overall performance.
Group Managing Director and CEO Gideon Muriuki said the results reflect the resilience of the bank’s diversified business model and its continued focus on sustainable growth.
Looking ahead, the bank expects its strong digital footprint and deep integration within the co-operative movement to support continued profitability and long-term value creation for shareholders.
