Co-Operative Bank of Kenya Plc Third Quarter Net Earnings grew 12.3% to KSh 21.56 Billion, the positive news causing heightened activity on its counter at the Nairobi Securities Exchange(NSE).
Co-Operative Bank shares were among the top movers at the NSE after the lender’s Board of Directors declared an Interim Dividend at the rate of KSh 1 per share compared to a similar period in 2024 when shareholders got nil.
This Dividend will be paid to shareholders on December 4th 2025 with a book closure on November 26th 2025, signalling confidence in the bank’s performance and capital position. The biggest beneficiary will be CoopHoldings Cooperative Society Limited, which has a 64.56% stake in the business.
Co-Operative Bank Shares Performance At the NSE
At the close of trading Thursday, Co-operative Bank of Kenya shares gained 9.45% to KSh 24.90, with a traded volume of 3.494,165 shares and a gross turnover of KSh 87 million. The counter is currently with a market capitalization of KSh 146.09 Billion.
Some of the top individual shareholders of Co-Operative Bank as at April 2025 include its CEO Gideon Maina Muriuki, Patel, Baloobhai; Patel, Amarjeet Baloobhai; Ndegwa Family through ICEA Lion Life Assurance Company Limited, and Westlands Triangle Properties Limited among others.
Co-operative Bank Key Financial Performance Indicators
Co-Operative Bank’s Net Interest Income was KSh 45.28Bn, up 22.8%, driven by strong lending growth and higher yields. Non-Interest Income was KSh 22.11Bn, slightly down 0.8%, reflecting lower trading and fee income.
The lender’s Total Operating Income was KSh 67.38Bn, up 13.9%, while Loan Loss Provision increased 31.9% to KSh 7.36Bn, indicating higher credit risk buffers amid a cautious lending environment.
Co-Op Bank Operating Expenses increased 15.4% to KSh 37.72Bn, as the lender absorbed the high cost of its digital expansion strategy. The lender’s pre-tax profit grew 12/1% to KSh 30.03Bn while Earnings Per Share (EPS), which is a measure of the lender’s profitability was up 11.9% to KSh 3.68Bn
The Balance Sheet size of Co-Operative Bank grew 8.6% to KSh 815.27Bn while Customer Deposits were up 6.7% to KSh 548.58Bn. Net Loans & Advances increased 6.6% to KSh 406.52Bn while Shareholders’ Equity grew 24/6% to KSh 164.16Bn.
Loan loss provisions increased by KSh 1.78 Bn to KSh 7.36 Bn, reflecting high credit risks in the lending environment as shown by a ballooning gross non-performing loans which grew by double digits to KSh 78.93 Bn.
According to an Earnings Report from Standard Investment Bank(SIB), the lender’s balance sheet quality deteriorated with the Group’s gross Non-performing loans inching upwards by 12.7% to KSh 78.9Bn.Gross NPL ratio estimated at 17.5%, a deterioration from 16.4% in 3Q24. The lender ramped up loan loss provisions by 31.9% to KSh 7.4bn to cater for bulging non performing loans portfolio.
The lender’s Return on Equity(ROE) declined to 19.4% from 21.3% in 3Q24. However, this was partly attributable to a substantial leap in shareholders’ funds to KSh 164.2bn, which was up 24.5%, largely driven by improvement in other reserves.
The lender continues to face challenges of hyper inflation and a volatile currency in South Sudan where it posted a pre-tax profit of KSh 93.5 million. Co-Op Bank has apparently gone mute on its regional expansion ambitions, with little mention in its current 2005-2029 strategic plan.
According to the lender’s annual report 2024, its overall profitability was partially affected by Co-op South Sudan,
where contributions declined by 96.2%, dropping to KSh 11.1 million in 2024 from KSh 291.3 million in 2023, largely due to hyperinflation adjustments.
Leave a comment