The Co-operative Bank of Kenya will, for the first time, issue an interim dividend to shareholders, following a strong nine-month performance that saw profit after tax rise to Ksh21.56 billion, a 12.3 per cent increase from Ksh19.21 billion in the same period last year.
The bank’s board approved an interim dividend of Ksh1 per share, amounting to Ksh5.86 billion, a historic move since Co-op Bank was listed on the Nairobi Securities Exchange in 2008.
Co-op Bank has traditionally paid only a final dividend, with last year’s total payout standing at Ksh8.8 billion or Ksh1.50 per share.
Group Managing Director and CEO Gideon Muriuki credited the strong showing to, among other things, a “deep and growing customer base currently standing at over 9.4 million account holders and an extensive physical footprint.”
In a statement on Thursday, November 13, Co-op Bank said its total assets rose by 10.4 per cent to Ksh796.1 billion, up from Ksh720.8 billion in September 2024, driven by loan book expansion and growth in customer deposits.
Over the nine months, net loans and advances increased to Ksh390.9 billion, while customer deposits surged to Ksh567.9 billion.
Net interest income grew by 13.8 per cent to Ksh37.2 billion, up from Ksh32.7 billion, buoyed by an expanding loan portfolio.
Meanwhile, non-interest income stood at Ksh22.1 billion, supported by fees, commissions, and forex trading income, reflecting the strength of the bank’s diversified revenue base.
Operating expenses were contained at Ksh37.7 billion, helping maintain a cost-to-income ratio of 45.3 per cent.
The bank’s subsidiaries also posted steady growth. Co-op Consultancy and Bancassurance Intermediary Ltd recorded increased commissions from insurance and advisory services, while Co-op Trust Investment Services Ltd managed assets worth over Ksh219 billion.
In the region, Co-operative Bank of South Sudan returned to profitability, contributing Ksh259.3 million in pre-tax earnings amid improving macroeconomic stability.
The bank’s digital footprint continued to expand, with over 93 per cent of transactions now conducted through digital channels, including MCo-opCash, ATMs, and agency banking.
In the same period, the bank disbursed over Ksh32 billion in new SME loans and offered tailored financial solutions for SACCO societies and agribusinesses.
“The unique advantage of being rooted in the largest co-operative movement in Africa, boasting 15 million members – which underscores our unique synergies and deep community integration,” said CEO Muriuki.