Co-op Bank’s Digital Strategy Delivers Ksh30Bn Profit Before Tax in Strong Q3 Results

Co-op Bank has announced a robust set of results for the nine months to September 2025, posting a Profit Before Tax of Ksh30Bn.

This is a solid 12.1% rise from Ksh26.8Bn reported over a similar period in 2024.

After-tax profit rose by 12.3% to Ksh21.6Bn, underscoring the Bank’s steady growth trajectory under the ongoing “Soaring Eagle” Transformation Agenda.

Alongside the strong earnings, the Board declared an interim dividend of Ksh1.00 per share, a significant vote of confidence in the institution’s financial strength and outlook.

Balance Sheet Gains Reflect Solid Customer Confidence

Co-op Bank’s balance sheet continued to expand, supported by sustained customer activity and enhanced operational efficiency.

Key highlights include:

• Total Assets jumped 8.6% to KSh 815.3 billion, reflecting ongoing investments in digital infrastructure and customer-facing services.
• Customer Deposits grew 6.7% to KSh 548.6 billion, showing deepening customer trust and steady onboarding.
• Net Loans & Advances rose 6.6% to KSh 406.5 billion, driven by increased uptake across retail and MSME segments.
• Shareholders’ Funds surged 24.5% to KSh 164.2 billion, boosted by KSh 12.5 billion in retained earnings.

The Bank maintained a competitive Return on Equity of 19.4%, placing it among the top-performing financial institutions in the region.

Cost Efficiency Gains From a Decade of Transformation

Operating income rose 13.9% to Ksh67.4Bn, buoyed by a 22.8% growth in net interest income.

Operating expenses increased moderately by 15.4%, as the Bank continued investing in digital channels and branch optimization.

Notably, Co-op Bank’s Cost-to-Income Ratio stands at an improved 45.1%, a remarkable shift from 59% in 2014 – a direct outcome of its long-term Growth and Efficiency journey.

Digital Momentum Powers 90% of All Transactions

A key pillar of Co-op Bank’s performance is its accelerating digital adoption.

The Bank reported that over 90% of transactions now take place through digital and alternative channels, supported by:

A revamped and re-engineered Co-op Bank App (formerly Mco-opCash), enabling seamless digital onboarding.

A robust omni-channel ecosystem spanning web, mobile, USSD, 616 ATMs and CDMs, and a vast network of 16,000+ Co-op kwa Jirani agents.

Co-op Bank also consolidated its leadership in payments, retaining its position as Kenya’s largest issuer of Visa cards.

To strengthen its relevance to global travellers and traders, the Bank launched a multi-currency prepaid card, enhancing value for both retail and business clients.

Modernising Systems: Kingdom Bank Migration

A major milestone in 2025 was the successful migration of Kingdom Bank to the Finacle Core Banking System.

The upgrade provides a scalable backbone to drive innovation, agility, and group-wide synergies across Kenya and South Sudan.

Additionally, the Group rolled out a new Trade and Treasury System – a platform designed to speed up cross-border and domestic trade flows, optimise treasury operations, and strengthen risk management.

Empowering MSMEs: Digital Credit and Training

Co-op Bank continued to support small businesses, disbursing Ksh54.2Bn in e-Credit mobile loans year-to-date.

Out of this, Ksh8.2Bn was channelled directly to MSMEs.

The MSME loan book now represents 16.7% of the Bank’s portfolio, serving 254,707 MSME customers, with 70,010 entrepreneurs trained in credit management, business skills, and financial literacy.

Extending Reach Through a Strong Physical Network

Despite its digital momentum, Co-op Bank continues to invest in physical expansion to ensure inclusive access.

Branch network has grown to 217 outlets, including new locations in Laare, Kibwezi, Rumuruti, Eastleigh BBS Mall, Eldama Ravine, Eldoret, and others opened since June 2024.

The Bank maintains a nationwide network of 619 FOSA outlets, critical for reaching underserved and rural communities.

The Group benefits from the strength of the 15-million-member co-operative movement, with a deep and growing customer base of over 9.4 million account-holders.

This extensive presence – spanning branches, ATMs, agents, and FOSA units – continues to anchor the Bank’s leadership in community banking and co-operative finance.

Outlook: Sustained Growth Anchored on Resilience and Innovation

Co-op Bank’s Q3 performance reinforces the Bank’s disciplined strategy of balancing growth with operational resilience.

The combination of a large physical footprint, an expansive digital ecosystem, and unmatched ties to the co-operative movement positions the Group for sustainable growth through 2025 and beyond.

As the Bank continues executing the Soaring Eagle Transformation Agenda, its focus remains clear: customer-centric innovation, prudent risk management, and inclusive economic empowerment.