Co-operative Bank Reports Sh21.56 Billion in Profits in Q3 2025
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Co-operative Bank of Kenya recorded a profit after tax of KES 21.56 billion for the third quarter ending September 2025, an increase from KES 19.21 billion posted in the same period in 2024.
The bank’s performance was driven by solid loan growth, improved interest income, and stable asset quality across its operations.
Growth in Loans, Deposits, and Assets
The bank’s loans and advances to customers rose to KES 406.52 billion as of September 2025, up from KES 381.34 billion in September 2024. This follows a steady growth trajectory from KES 378.08 billion in 2023 and KES 335.16 billion in 2022.
Customer deposits increased to KES 548.58 billion in September 2025, compared to KES 513.98 billion a year earlier. This growth strengthened the bank’s liquidity position, with the loan-to-deposit ratio maintained at 74.11%.
Total Co-operative Bank assets in Q3 2025 reached KES 815.27 billion, up from KES 750.78 billion in 2024, representing 8.6% growth.
The bank’s asset base has grown steadily over the last five years, from KES 592.89 billion in 2022 and KES 661.34 billion in 2023, driven by increased lending, deposit inflows, and investments.
Income and Profitability
The bank’s income growth remained robust during the review period. Net interest income rose to KES 45.28 billion in Q3 2025, up from KES 36.87 billion in 2024 and KES 32.82 billion in 2023.
Interest expense stood at KES 22.65 billion, compared to KES 24.89 billion in 2024.
On the non-funded side, non-interest income increased to KES 22.11 billion, up from KES 22.28 billion in 2024, marking a 3.3% growth. The improvement was attributed to increased transaction volumes, digital banking income, and foreign exchange earnings.
Total operating income climbed to KES 67.38 billion from KES 59.16 billion in 2024, a 10.6% increase year-on-year. However, operating expenses also rose to KES 30.36 billion from KES 27.1 billion in 2024, driven by higher administrative and loan loss provisioning costs.
As a result, profit before tax reached KES 30.03 billion, up from KES 26.78 billion in 2024, while profit after tax settled at KES 21.56 billion, representing a 9.9% year-on-year increase. The profit after tax growth rate was 12.3% in 2025, compared to 4.4% in 2024.
Asset Quality and Efficiency
Co-operative Bank maintained stable asset quality despite a challenging credit environment. Gross non-performing loans (NPLs) increased to KES 78.93 billion in 2025, up from KES 70.01 billion in 2024, showing an 8.9% rise.
The NPL ratio remained relatively stable due to the expansion of the overall loan book and strengthened risk management controls.
The cost-to-income ratio improved slightly to 45.1% in 2025 from 45.8% in 2024.
Shareholder Value and Market Performance
Shareholder returns also improved during the quarter. Book value per share rose to KES 27.98 in 2025, compared to KES 22.47 in 2024, a 10.4% improvement supported by higher retained earnings.
The Co-operative Bank share price closed the quarter at KES 21.4, up from KES 13.35 at the end of Q3 2024. The price-to-book ratio stood at 0.76x, slightly higher than 0.59x in 2024.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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