Co-op Bank shatters records with $230 million profit under Gideon Muriuki

Co-operative Bank Group (Co-op Bank), led by Kenyan banking tycoon Gideon Muriuki, has delivered its strongest financial performance yet, closing the 2025 fiscal year with a record profit of Ksh29.75 billion ($229.57 million).

The bank’s financial results show a 16.9% increase in net profit from Ksh25.46 billion ($196.46 million) in 2024. The growth was driven by higher income and improved efficiency, reinforcing Co-op Bank’s position as one of Kenya’s top financial institutions.

Co-op Bank’s growth in income and assets
Total operating income rose 13.93% to Ksh91.89 billion ($708.98 million), up from Ksh80.65 billion ($622.26 million), driven by robust expansion in core earnings. Net interest income surged 21.99% to Ksh62.85 billion ($484.92 million), supported by increased lending activity, while overall income growth reflected sustained momentum across key business lines.

Cost management efforts continued to deliver gains, with the cost-to-income ratio improving to 46.3%, compared to 59% recorded in 2014 at the start of the bank’s efficiency drive. The steady improvement underscores the success of its long-term transformation strategy.

The group’s total assets increased 11.32% to Ksh827.4 billion ($6.38 billion), from Ksh743.3 billion ($5.74 billion) a year earlier. Customer deposits grew 13.28% to Ksh576.5 billion ($4.45 billion), reinforcing a strong liquidity base, while shareholders’ funds rose 13.82% to Ksh165.5 billion ($1.28 billion), supported by a Ksh15.1 billion ($116.5 million) increase in retained earnings.

Co-op Bank’s dividend payout tops $113 million
Co-op Bank, a leading force in East Africa’s banking sector, continues to deepen its footprint through subsidiaries including Kingdom Securities, Co-op Trust Investment Services Ltd, Co-op Bancassurance Intermediary Ltd, Kingdom Bank Ltd, and Co-operative Bank of South Sudan.

Muriuki, who was instrumental in the bank’s expansion, owns a 2% stake in the leading financial services group. This stake, which is now worth Ksh3.52 billion ($27.15 million), is poised to receive a $2.26 million dividend, cementing his position among the richest investors on the Nairobi Securities Exchange.

Following the robust performance, the board has proposed a final dividend of Ksh1.5 ($0.01) per share, bringing total dividend payout to Ksh2.5 ($0.014) per share for the year ended December 31, 2025. This translates to a total distribution of Ksh14.68 billion ($113.21 million), marking a 67% increase from Ksh8.8  ($68.04 million) paid in 2024.

The proposed payout, subject to shareholder approval at the upcoming Annual General Meeting, will see Kenya’s 15-million-member co-operative movement receive approximately Ksh9.47 billion, reinforcing the bank’s deep-rooted ties to the co-operative ecosystem.