Co-operative Bank of Kenya has posted a group net profit of KSh 29.75 Bn for the year ended 31 December 2025, up 16.9% from KSh 25.46 Bn, marking the highest earnings in the lender's history and extending an unbroken profit streak that stretches back to 2003.
- •The result was built almost entirely on margin expansion with the net interest income surging 22.0% to KSh 62.85 Bn as interest expenses fell 12.8% to KSh 30.29 Bn, the first absolute decline in funding costs since 2020, while interest income rose 8.0% to KSh 93.14 Bn on the back of a 12.6% expansion in the net loan book to KSh 421.00 Bn.
- •The margin tailwind more than compensated for a flat non-interest income line, which slipped 0.3% to KSh 29.03 Bn as forex trading income contracted following shilling stabilization.
- •Total operating income crossed the KSh 90 Bn mark for the first time, reaching KSh 91.89 Bn, up 13.9%. Operating expenses grew 11.4% to KSh 51.99 Bn, with staff costs (up 13.1% to KSh 20.82 Bn) and loan loss provisions (up 9.2% to KSh 9.46 Bn) accounting for the bulk of the increase.
The cost-to-income ratio improved to 56.6% from 57.9%, though it remains above the sub-55% levels the bank sustained between 2013 and 2016.
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On the balance sheet, total assets grew 11.3% to KSh 827.35 Bn, breaching the KSh 800 Bn threshold for the first time. Customer deposits rose 13.4% to KSh 574.17 Bn. Gross non-performing loans edged up 3.4% to KSh 73.52 Bn, but the gross NPL ratio improved to 15.8% from 17.2% as loan growth outpaced new impairments. The total capital adequacy ratio strengthened to 22.6% from 21.2%, well above the 14.5% regulatory floor.
Earnings per share rose to KSh 5.04 from KSh 4.33. The board declared a total dividend of KSh 2.50 per share (final KSh 1.50 plus an interim KSh 1.00 paid in December 2025), a 66.7% increase and the highest payout in the bank's history.
Kingdom Bank, the group's subsidiary, reported net profit up 59.6% to KSh 876.45 Mn on aggressive balance sheet expansion.
- •Net loans surged 58.4% to KSh 22.19 Bn and customer deposits jumped 38.4% to KSh 29.94 Bn, pushing total assets up 24.7% to KSh 51.36 Bn.
- •The growth came at a cost: the cost-to-income ratio deteriorated sharply to 70.2% from 62.0% as operating expenses rose 52.0%, outpacing 34.1% revenue growth.
- •Capital adequacy strengthened to 25.8% from 19.1%, suggesting a capital injection supported the expansion.
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Metric FY2025 FY2024 YoY Change Total Interest Income 12.03 Bn 10.40 Bn ▲ +15.7% Total Interest Expense 5.12 Bn 5.87 Bn ▼ -12.8% Net Interest Income 6.92 Bn 4.73 Bn ▲ +46.1% Non-Interest Income 484.9 Mn 352.5 Mn ▲ +37.6% Total Operating Income 7.40 Bn 5.09 Bn ▲ +45.5% Operating Expenses 1.43 Bn 1.39 Bn ▲ +2.9% Loan Loss Provisions 553.2 Mn 519.0 Mn ▲ +6.6% Profit Before Tax 5.97 Bn 3.69 Bn ▲ +61.6% Profit After Tax 5.44 Bn 3.33 Bn ▲ +63.2% Total Assets 104.37 Bn 90.54 Bn ▲ +15.3% Net Loans & Advances 19.91 Bn 21.73 Bn ▼ -8.4% Customer Deposits 62.17 Bn 53.96 Bn ▲ +15.2% Government Securities 78.58 Bn 61.79 Bn ▲ +27.2% Shareholders' Funds 34.03 Bn 30.00 Bn ▲ +13.4% Gross NPLs 2.49 Bn 2.47 Bn ▲ +0.6% Cost-to-Income Ratio 19.4% 27.4% ▼ -8.0pp
Co-op Bank's total assets have grown from KSh 24.12 Bn in 1999 to KSh 827.35 Bn, a 34-fold expansion.
Net profit has swung from a loss of KSh 1.59 Bn in 2000 to KSh 29.75 Bn. Customer deposits have risen from KSh 17.63 Bn to KSh 574.17 Bn. The dividend, absent for much of the early 2000s, has been paid every year since 2006.
