BUSINESS

Co-op Bank Rides on ‘Soaring Eagle’ to Ksh9.6 Billion Profit

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Co-op Bank Q1 2025 profit
The group’s financial position registered strong growth.
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Co-operative Bank has reported a Profit Before Tax of Ksh9.63 billion for the first quarter of 2025, a 6.8% growth from Ksh9 billion recorded in the same period in 2024. This represents a profit after tax of Ksh6.9 billion compared to Ksh6.6 billion reported over the previous year, a growth of 5.3%.

The strong performance is in line with the Group’s strategic focus on sustainable growth, resilience, and agility, riding on its ‘Soaring Eagle’ transformation agenda, Co-op Ban Group CEO and MD, Dr Gideon Muriuki says.

The group’s financial position registered strong growth. Total Assets grew to Ksh774.1 billion, 8.3% growth from Ksh714.7 billion.Net loans and advances grew by 1.7% to Ksh384.5 billion compared to Ksh378.1 billion in Q1 2024.Customer deposits increased to Ksh525.2 billion, a 9.0% increase from Ksh481.8 billion.

Meanwhile, shareholders’ funds have grown to Ksh155.9 billion, a 22.7% increase from Ksh 127.1 billion in Q12024 driven by the strong growth in retained earnings of Ksh16.7 billion.

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The Group says reported “excellent efficiency gains from the various initiatives” to record a Cost-to-Income Ratio of 45.5% in Q1 2025, from 59% in FY2014 when it kicked off its growth & efficiency journey.

Performance of Subsidiaries

Co-op Bancassurance Intermediary Ltd posted a Profit Before Tax of Ksh402.1 million in Q12025, riding on strong penetration of Bancassurance business.

Co-operative Bank of South Sudan, which is a unique joint venture (JV) partnership with Government of South Sudan (Co-op Bank 51% and GOSS 49%) made a Profit Before Tax of Ksh80.7 million in Q1 2025. This performance was, however, restated to reflect the changes in general purchasing power of the South Sudanese Pound resulting in a loss of Ksh47.0 million.

Co-op Trust Investment Services Ltd contributed Ksh161.5 Million Profit Before Tax in Q1 2025 compared to Ksh75.5 million in Q1 2024, a commendable 113.9% growth. The subsidiary has Funds Under Management currently at Ksh383.9 billion.

Kingdom Bank Limited (A niche MSME Bank) contributed a Profit Before Tax of Ksh224.7 million in Q12025.

Kingdom Securities Limited contributed a Profit Before Tax of Ksh41.8 million in Q12025, a growth of 199.6%

“The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors,” says CEO and MD, Dr Gideon Muriuki. “This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint, over 9.4 Million account holders and the unique synergies in the over 15-million-member co-operative movement that is the largest in Africa.”

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Written by
BT Reporter

editor [at] businesstoday.co.ke

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