Co-op Bank posts Sh29.75b profit, proposes a record Sh14.67 billion dividend
Business
By
Brian Ngugi
| Mar 19, 2026
[File, Standard]
Co-operative Bank of Kenya reported full-year 2025 results on Thursday, proposing a record Sh14.67 billion dividend payout that will deliver a substantial windfall to shareholders and especially the country's co-operative movement.
The bank reported profit after tax of Sh29.75 billion for the year ended 31 December 2025, a 16.9 per cent increase from Sh25.46 billion in 2024, marking its best-ever financial performance.
The stellar performance was driven by a 21.99 per cent surge in net interest income to Sh62.85 billion. Total operating income rose 13.93 per cent to Sh91.89 billion.
The board proposed a final dividend of Sh1.50 per share, bringing the total payout in the year to Sh2.50 following an interim dividend of Sh1.00 paid earlier. This payment represents a notable 67 per cent increase from the Sh1.50 paid in 2024.
The proposed dividend translates to a total payout of Sh14.67 billion, compared with Sh8.8 billion the previous year.
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The country’s 15-million-member cooperative movement, the bank's strategic shareholder base, is expected to enjoy a dividend bonanza estimated at Sh9.47 billion.
"This is the best-ever performance by the Bank, which underscores the significant gains made under the 2025-2029 Good to Great Strategy and the 'Soaring Eagle' Transformation Agenda," Group Chief Executive Gideon Muriuki said in a statement.
The bank retained a frugal posture, with the cost-to-income ratio before provisions improving to 46.3 per cent, demonstrating significant efficiency gains from 59 per cent recorded in 2014 when the bank began its transformation journey.
Subsidiaries delivered strong performances, with Co-op Trust Investment Services recording profit before tax of Sh936.2 million, a 142.3 per cent surge.
Co-op Bancassurance Intermediary posted Sh1.49 billion, up 23.7 per cent.
Kingdom Bank reported Sh1.13 billion, while Kingdom Securities posted Sh129.7 million, a 74.8 per cent increase.
Co-op Bank of South Sudan returned to profitability with a positive Sh236.3 million, compared with a negative Sh11.1 million in 2024.
Total assets grew 11.32 per cent to Sh827.4 billion, while customer deposits rose 13.28 per cent to Sh576.5 billion. Loans and advances increased 12.65 per cent to Sh421.0 billion.
The bank maintained its digital leadership, with over 90 per cent of customer transactions processed through alternative channels it said.
E-Credit disbursements reached Sh72.96 billion during the year, with Sh10.43 billion directed to MSMEs.
Shareholders' funds increased 13.82 per cent to Sh165.5 billion, supported by a Sh15.1 billion increase in retained earnings. Return on equity stood at 19.1 per cent.
The bank expanded its physical footprint to 222 branches, including 189 in Kenya, six in South Sudan, and 27 under Kingdom Bank, creating 372 new jobs during the year.
The results mark the fourth tier-one lender to report earnings, following KCB, Equity, and StanChart, signaling sustained banking sector profitability despite economic headwinds.