Co-op raises interim dividend 50 per cent as profit hits Sh27bn

Co-operative Bank of Kenya reported a significant 19.6 percent increase in profit before tax to Sh35.9 billion for the nine months ended September 30, 2026, compared to Sh30 billion in the same period last year. The bank's profit after tax rose 27.2 percent to Sh27.4 billion from Sh21.6 billion, driven by improved lending, increased customer deposits, and stronger contributions from its subsidiaries.

Total assets expanded by 11.3 percent to Sh907.4 billion, while customer deposits grew by 14.8 percent to Sh642.5 billion. Net interest income increased 12.7 percent to Sh51 billion, and total operating income rose 11.6 percent to Sh75.2 billion. The bank's non-performing loans ratio declined to 12.9 percent, and its cost of risk improved to 1.4 percent.

The bank's digital and lending expansion saw approximately 94 percent of customer transactions processed through alternative delivery channels, with deposits from its agency banking network increasing by 39 percent to Sh139.37 billion. Co-op Bank launched its youth banking proposition, branded Ignite, targeting over 10 million young customers in the medium term, disbursing Sh47.5 billion to young entrepreneurs and offering financial literacy and empowerment programmes.

The bank's performance was attributed to its 2025-2029 Good to Great Strategy and the Soaring Eagle Transformation Agenda, with the Group Managing Director and CEO, Gideon Muriuki, emphasizing the focus on expanding the customer base, strengthening the balance sheet, and leveraging its extensive co-operative movement network.