Co-op Bank earns global recognition among top-performing banks

Co-operative Bank of Kenya has earned a place among the world’s top-performing banks in Forbes’ 2026 ranking, putting the Kenyan lender in the global spotlight for its financial performance, resilience and efficiency.

The Forbes ranking evaluates 500 banks across 89 countries, using a methodology that goes beyond headline profits to assess the underlying strength and sustainability of their performance.

The assessment covers four key dimensions: profitability, growth and earnings quality, capital and funding resilience, and asset quality and efficiency.

Profitability carries the highest weighting at 30 per cent and combines measures including return on average assets, cost-to-income ratio and net interest margin.

Growth and earnings quality accounts for 20 per cent, assessing earnings growth and stability as well as customer deposit growth over three-year periods.

Capital and funding resilience contributes 25 per cent, based on indicators such as the equity ratio and loan-to-deposit ratio, while another 25 per cent is assigned to asset quality and efficiency, examining credit quality, risk management and balance-sheet resilience.

The recognition comes against the backdrop of a strong financial performance by Co-op Bank, which has continued to expand its balance sheet while maintaining profitability and capital buffers.

The bank reported a 15.8 per cent increase in profit before tax to Ksh.40.3 billion in 2025, from Ksh.34.8 billion a year earlier. Profit after tax rose 16.9 per cent to Ksh.29.75 billion, marking the strongest earnings in the bank’s history.

Its total assets increased by 11.3 per cent to Ksh.827.4 billion, while customer deposits grew by 13.3 per cent to Ksh.576.5 billion. Loans and advances rose 12.7 per cent to Ksh.421 billion, demonstrating continued growth in lending activity.

Co-op Bank’s financial strength was further reflected in a 19.1 per cent return on equity, a 46.3 per cent cost-to-income ratio and total capital adequacy of 22.6 per cent in 2025.

The figures point to the lender’s ability to generate returns while maintaining a strong capital position and controlling operating costs.

The bank has also strengthened shareholder returns. Its total dividend for 2025 was set at Ksh.2.50 per share, including a Ksh.1 interim dividend, translating to a total payout of about Ksh.14.67 billion. Approximately Ksh.9.47 billion of the payout is expected to accrue to the co-operative movement.

Beyond profitability, the ranking’s emphasis on deposit growth, funding structure, capital strength and asset quality is significant for Co-op Bank because it tests whether strong earnings are supported by a sustainable balance sheet. The bank's continued growth in deposits and loans, coupled with its capital and liquidity buffers, strengthens its position in these areas.

The recognition also comes as Kenyan banks operate in an increasingly competitive environment characterised by changing interest rates, evolving regulation, digital disruption and rising demands for efficient and resilient financial services.

The global ranking consequently places Co-op Bank among institutions demonstrating that strong banking performance is not measured by profits alone, but by the ability to sustain growth, preserve capital, manage risk and efficiently deploy resources over time.