BUSINESS

Higher Dividend For Co-op Bank Shareholders as Profit Surges

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Co-op Bank has the unique advantages of being rooted in the largest co-operative movement in Africa.
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Co-operative Bank posted a strong Profit Before Tax of KSh 40.3 billion for the year ended 31st December 2025, compared to KSh 34.8 billion recorded in the previous year, an impressive 15.8 % growth.

Profit After Tax grew by 16.9% to KSh 29.75 billion from KSh 25.46 billion in 2024. This is the best-ever performance by Co-operative Bank, which underscores the significant gains made under the 2025-2029 Good to Great Strategy and the “Soaring Eagle” Transformation Agenda.

Meanwhile, Co-operative Bank has proposed a final dividend of KSh 1.50 per share, which brings the total dividend to KSh 2.50 per share following an earlier interim dividend of KSh 1.00 per share, a significant 67 per cent rise from the KSh 1.50 paid out in FY2024.

The proposed dividend for FY2025 translates to a total dividend payout of KSh 14.67 billion, compared to KSh 8.8 billion paid in FY2024, representing a significant increase of 67 per cent. The proposed final dividend is subject to approval by shareholders at the forthcoming Annual General Meeting.

The 15-million-member co-operative movement is expected to receive approximately KSh 9.47 billion of the total dividend payout. “Co-operative Bank Group remains steadfast in advancing its strategic priorities, firmly grounded in resilience and growth across diverse economic sectors,” said Dr. Gideon Muriuki, Group Managing Director & CEO.

He said Co-op Bank has the unique advantages of being rooted in the largest co-operative movement in Africa — boasting 15 million members — which underscores its unique synergies and deep community integration.

Highlights of FY 2025 Performance

  • Return on Equity stood at 19.1%, reflecting sustained value creation for shareholders.
  • Total Assets increased by 11.32% to KSh 827.4 billion, from KSh 743.3 billion in 2024.
  • Customer Deposits grew by 13.28% to KSh 576.5 billion, while loans and advances increased by 12.65% to KSh 421.0 billion.
  • Borrowed funds increased by 11.35% to KSh 61.7 billion, reflecting continued partnership with external funders to diversify the funding base.
  • Shareholders’ Funds increased by 13.82% to KSh 165.5 billion, supported by a strong Ksh. 15.1 billion increase in retained earnings.
  • Net Interest Income increased by 21.99% to KSh 62.85 billion, supporting overall income growth.
  • Operating income increased by 13.93% to KSh 91.89 billion, driven by a 21.99% growth in net interest income.
  • Operating expenses increased by 11.35%, with the cost-to-income ratio before provisions at 46.3%, demonstrating a significant improvement from 59% recorded in 2014 when the Bank began the Growth & Efficiency journey.

> Co-operative Bank in Ksh756 Million to Boost Green and Digital Businesses

Written by
BT Reporter -

editor [at] businesstoday.co.ke

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