Co-op Bank Surges to Sh21.56 Billion Profit and Unveils First Ever Interim Dividend

Co op Bank has reported a strong performance for the nine months to September, posting a profit after tax of Sh21.56 billion. This is an increase from Sh19.21 billion recorded in the same period last year, underscoring the bank’s steady earnings momentum despite a challenging operating environment.

In a signal of confidence to the market, the bank’s board has approved the first interim dividend in the institution’s history. Shareholders will receive Sh1 per share, translating to a total payout of about Sh5.86 billion.

The bank’s performance was driven by solid growth in interest income, which rose to Sh45.27 billion from Sh36.87 billion. Lending to customers and investment in government securities continued to anchor the bank’s core earnings. Operating income expanded to Sh67.38 billion, reflecting the resilience of the bank’s income streams.

Non interest income recorded a marginal softening, slipping to Sh22.11 billion from Sh22.28 billion. Operating expenses grew to Sh37.72 billion as the bank expanded its branch network to 217, up from 204 outlets as it strengthened its national presence.

Co-op Bank increased its loan loss provisions to Sh7.35 billion to cushion the balance sheet against emerging credit risks. Customer deposits rose to Sh548.57 billion, while total assets climbed to Sh815.27 billion, cementing the bank’s position among the top tier financial institutions in the country.

The loan book grew to Sh406.52 billion from Sh381.34 billion, reflecting improved credit uptake across key sectors.

The majority shareholder, Co op Holdings Co-operative Society Limited, which owns 64.56 percent of the bank, will take home about Sh3.78 billion from the interim payout.

Group Managing Director Gideon Muriuki said the introduction of an interim dividend marks a major milestone for the bank and reflects the strength of its fundamentals and future outlook.