Co-op Bank net profit jumps 27.2% to Ksh.27.4B in nine months

The lender’s profit after tax rose from Ksh.21.6 billion recorded in a similar period last year, while profit before tax increased by 19.6% to Ksh.35.9 billion from Ksh.30 billion.

Total assets expanded by 11.3% to Ksh.907.4 billion, reflecting continued growth in the bank’s balance sheet and lending activities.

The improved earnings were supported by a 22.2% increase in net loans and advances to Ksh.496.9 billion, while customer deposits grew by 14.8% to Ksh.642.5 billion.

Net interest income increased by 12.7% to Ksh.51 billion, while total operating income rose by 11.6% to Ksh.75.2 billion, supported by growth in interest income and resilient non-funded income.

Co-operative Bank Group Managing Director and CEO Gideon Muriuki said the performance reflected progress in implementing the lender’s 2025-2029 Good to Great Strategy and its Soaring Eagle Transformation Agenda.

The bank said it had maintained control over its operating costs, which increased by 5.3%, slower than the growth in operating income. Its cost-to-income ratio before provisions stood at 46.4%.

Asset quality also improved, with the non-performing loans ratio declining to 12.9% from 17.1% in September 2025. The cost of risk dropped to 1.4% from 2.5%, while IFRS loan-loss coverage improved to 82.2% from 70.4%.

The bank’s subsidiaries also contributed to the group's performance. Kingdom Bank recorded a 61.8% increase in profit before tax to Ksh.1.33 billion, while Co-optrust Investment Services posted a 54.8% growth to Ksh.966.8 million.

Co-operative Bank of South Sudan recorded profit before tax of Ksh.528 million, compared to Ksh.93.5 million in the corresponding period last year.

Digital banking remained a key contributor to operations, with approximately 94% of customer transactions processed through alternative delivery channels. The bank's digital credit platform disbursed Ksh.66.6 billion during the third quarter, bringing cumulative disbursements since inception to more than Ksh.568.5 billion.

The lender also announced an increase in shareholder returns, with its board approving an interim dividend of Ksh.1.50 per share, representing a 50% increase from Ksh.1 paid last year.

The dividend will be paid on December 4, 2026, to shareholders registered by November 25.