Co-operative Bank of Kenya is set to pay its first-ever interim dividend after reporting robust financial results for the nine months ending September.
The lender’s net profit rose to Sh21.56 billion, up 12.3 percent from Sh19.21 billion in the same period last year, driven by increased earnings from lending activities.
The interim dividend of Sh1 per share totals Sh5.86 billion and is a milestone for shareholders since Co-op Bank listed on the Nairobi Securities Exchange in 2008. Historically, the bank has only distributed dividends once a year, with last year’s payment at Sh1.50 per share amounting to Sh8.8 billion.
The interim payout will be made around December 4 to shareholders registered by November 26, 2025, with Co-op Holdings Co-operative Society Limited, the largest shareholder, set to receive Sh3.78 billion for its 64.56 percent stake.
“The bank has declared an interim dividend of Sh1 per share for the nine months to September 2025, marking a significant milestone and underscoring the confidence that management has in the bank’s strong performance and outlook,” said Gideon Muriuki, Managing Director at Co-op Bank.
Net interest income climbed 22.8 percent to Sh45.27 billion from Sh36.87 billion, while non-interest income slightly declined to Sh22.11 billion from Sh22.28 billion. Overall operating income rose 13.9 percent to Sh67.38 billion.
Operating expenses increased 15.4 percent to Sh37.72 billion, driven by higher staff costs, which rose 11.5 percent to Sh15.05 billion, and provisions for loan losses, which jumped 31.9 percent to Sh7.35 billion.
The growth in staff costs followed the bank’s expansion of its branch network, which now totals 217, up from 204 a year earlier. The increase in branches across Co-op Bank and its subsidiaries, Kingdom Bank and Co-operative Bank of South Sudan, has seen the workforce rise to 5,826 from 5,617.
“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,” Mr Muriuki added.
Among its subsidiaries, Kingdom Bank, 90 percent owned by Co-op Bank, saw its net profit decline to Sh527.59 million from Sh603 million. Co-op Consultancy & Bancassurance Intermediary Limited posted pre-tax profit of Sh1.15 billion, up from Sh824.3 million, while Co-operative Bank of South Sudan returned Sh93.5 million, rising from Sh33.8 million.
Co-op Trust Investment Services Limited more than doubled its pre-tax profit to Sh624 million from Sh254.9 million as funds under management increased 65.7 percent to Sh496.4 billion.
During the review period, Co-op Bank’s total assets rose 8.6 percent to Sh815.27 billion, customer deposits grew 6.7 percent to Sh548.57 billion, and the loan book expanded to Sh406.52 billion from Sh381.34 billion. These results demonstrate the lender’s steady growth and continued confidence in its business strategy.
