Co-operative Bank Reports KSh 30 Billion Profit for Q3 2025

Co–op Bank has delivered strong double-digit growth in Q3 2025 with a Profit Before Tax of KSh 30.0 billion, up 12.1% from KSh 26.8 billion in Q3 2024. After-tax profit rose 12.3% to stand at KSh 21.6 billion from KSh 19.2 billion a year earlier.

The results underscore the Group’s strategic focus on sustainable growth, resilience, and agility under the “Soaring Eagle” Transformation Agenda.

Interim Dividend

The bank has declared an interim dividend of KSh 1.00 per share for the nine (9) months to September 2025, marking a significant milestone and underscoring the confidence that management has in the Bank’s strong performance and outlook.

Highlights of Q3 2025 Performance

• Return on Equity. The strong performance has led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 19.4%.
• Total Assets increased by 8.6% to KSh 815.3 billion.
• Customer Deposits increased by 6.7% to KSh 548.6 billion, while Net Loans and Advances increased by 6.6% to KSh 406.5 billion.
• Shareholders’ Funds grew 24.5% to KSh 164.2 billion, boosted by a retained earnings growth of KSh 12.5 billion.
• Operating Income increased 13.9% to KSh 67.4 billion, driven by a 22.8% rise in net interest income.
• Operating Expenses rose 15.4%, with the Cost-to-Income Ratio standing at 45.1%, a significant improvement from 59% back in 2014 when the Bank began the Growth and Efficiency journey.

Digital Momentum & Customer Inclusion.

• The Bank has gone live on a new Trade and Treasury System that supports faster & seamless trade services, optimizes treasury performance strengthens risk management, and enhances competitiveness in supporting cross-border and domestic trade flows.
• Mco-opCash, the Bank’s mobile banking platform, has been revamped and renamed Co-op Bank App. The new app enables clients onboard digitally as part of our customer-centric focus.
• Supporting our payments solutions, we recently launched a multi-currency prepaid card to enhance our value proposition for retail and business clients engaged in trade and international travel. Co-op Bank is the largest issuer of Visa cards in the country.
• Kingdom Bank is upgrading its Core Banking System to the Finacle Core Banking system that went live in Co-op Bank Kenya & Co-op Bank South Sudan. The new core banking system will provide a modern, agile, and scalable foundation that supports Group synergy, innovation, operational efficiency, and superior customer experience.
• Over 90% of transactions now happen through digital and alternative channels, supported by a robust omni-channel platform (web, mobile, USSD), 616 ATMs & CDMs, and 16,000+ Co-op kwa Jirani agents.
• The Bank disbursed KSh 54.2 billion in E-Credit mobile loans year-to-date, of which Ksh 8.2 billion was to MSMEs.
• The MSME loan portfolio represents 16.7% of the Bank’s portfolio, with 254,707 customers benefiting from tailored packages and 70,010 from training.
• A national network of 619 FOSA outlets continues extending financial services to remote areas and supports the 15-million-member co-operative movement.

Expanding Physical Reach & Team

• Branch network expanded to 217 outlets, with 15 new branches and executive centres opened across Kenya since June 2024. The new locations include: Laare, Kibwezi, Rumuruti, Eastleigh BBS Mall, Eldama Ravine, Eldoret Airport Road, Naromoru, Ruiru Nord Mall, Marimanti, Dagoretti Market, Maai Mahiu, Isibania, and Luanda.
• The Bank is accelerating its premium banking strategy with the launch of state-of-the-art Executive Banking Centres, the latest being The Westlands Square Executive Centre in Nairobi and the Nyali Executive Plus Centre in Mombasa.
• Kingdom Bank and Co-op Bank of South Sudan added new branches in Kariobangi, Bungoma and Gudele, hence a network of 25 branches and 6 branches respectively.
• Staff strength increased to 5,826, creating 426 new jobs from 2023.

Performance of Subsidiaries

• Co-op Trust Investment Services Ltd, our fund management business,delivered outstanding performance with Funds Under Management at Ksh 496.4 billion, now one of the largest Fund Managers in the industry. The profit before tax was Kshs.624 M, a 145% growth.
• Co-op Bancassurance Intermediary Ltd, the bancassurance business has had excellent penetration with now a Ksh 1.15 billion PBT.
• Co-op Bank of South Sudan Ltd posted a restated profit of Ksh 93.5 million after accounting for hyperinflation.
• Kingdom Bank Ltd generated a strong Ksh 820.2 million PBT.
• Kingdom Securities Ltd earned Ksh 89.9 million PBT.

ESG Leadership & Community Impact

• Named Most Sustainable Bank in Kenya at the 2024 Kenya Bankers’ Sustainable Finance Catalyst Awards- our fifth win in seven years.
• Made significant commitments in climate risk capacity-building initiatives and developed a Climate Strategy Roadmap in support of SDG 13 ‘Take urgent action to combat climate change and its impacts’.
• Co-operative Bank Foundation, a key social investment vehicle, has provided Scholarships to gifted but needy students from all regions of Kenya. The sponsorship includes fully paid secondary education, full fees for University education, Internships, and career openings for beneficiaries. The foundation is fully funded by the bank and has supported over 11.820 students since the inception of the program.
• The Bank provides capacity building (Consultancy and financial advisory) services mostly to the Co-operative movement and other selected sectors of the economy at concessionary rates. Since inception, we have undertaken 3,852 consultancies towards enhancing efficiency and profitability of the Co-operative movement.

Recognition

• The Bank was feted at the Global SME Finance Awards 2025 and named Winner, Product Innovation of the year- Africa.
• The Global SME Finance Awards 2025 recognized outstanding financial institutions worldwide for innovatively expanding access to finance for small and medium enterprises, celebrating excellence in digital, sustainable, and inclusive SME banking.

Conclusion

• Co-operative Bank Group remains steadfast in advancing its strategic priorities, firmly grounded in resilience and growth across diverse economic sectors. Our success is powered by:
• Distinctive customer experience – ‘The Co-op Bank Way’: Delivering exceptional experiences through a deeply embedded, consistent customer-centric culture across all touchpoints.
• A universal banking model that balances comprehensive service offerings with operational agility.
• A robust digital presence that ensures seamless accessibility, supported by an industry-leading omni-channel platform.
• An extensive physical footprint comprising a countrywide branch network, ATMs and agency outlets, fortifying our reach across all regions of the country.
• A deep and growing customer base currently standing at over 9.4 million account-holders.
• The unique advantage of being rooted in the largest co-operative movement in Africa-boasting 15 million members-which underscores our unique synergies and deep community integration.

(Sponsored)

Source: TUKO.co.ke