Co-operative Bank of Kenya shareholders are set to receive their first-ever interim dividend of Sh1 per share, following the lender’s net profit for the nine months ended September, which rose 12.3 percent to Sh21.56 billion.
The growth in net earnings, up from Sh19.21 billion a year earlier, was driven by an increase in net interest income.
The dividend totals Sh5.86 billion and is the first ever interim distribution to shareholders since the bank listed on the Nairobi Securities Exchange (NSE) in 2008.
Co-op Bank has traditionally paid dividends once a year, with last year’s payout having been Sh1.50 per share, totalling Sh8.8 billion.
The Sh1 per share interim dividend will be paid on or about December 4 to the shareholders on the bank’s register at the close of business on November 26, 2025.
Top shareholder, Co-op Holdings Co-operative Society Limited, will receive Sh3.78 billion for its 64.56 percent stake.
“The bank has declared an interim dividend of Sh1 per share for the nine months to September 2025, marking a significant milestone and underscoring the confidence that management has in the bank’s strong performance and outlook,” said Gideon Muriuki, the managing director at Co-op Bank.
Net interest income grew by 22.8 percent to Sh45.27 billion, up from Sh36.87 billion posted in the preceding similar period. Non-interest income retreated slightly to Sh22.11 billion from Sh22.28 billion in the period the lender’s operating income rose 13.9 percent to Sh67.38 billion.
Staff costs
Co-op Bank’s operating expenses increased by 15.4 percent to Sh37.72 billion as it stepped up provisions for loan losses by 31.9 percent to Sh7.35 billion and staff costs rose by 11.5 percent to Sh15.05 billion.
This increase in staff costs was due to the bank expanding its branch network to 217 by the end of September this year, up from 204 in the same period last year.
The increase in branches has seen the lender raise its staff numbers to 5,826 from 5,617.
These additional branches were spread between Co-op Bank and its banking subsidiaries, Kingdom Bank and the Co-operative Bank of South Sudan.
“The bank is accelerating its premium banking strategy with the launch of state-of-the-art Executive Banking Centres, the latest being the Westlands Square Executive Centre in Nairobi and the Nyali Executive Plus Centre in Mombasa,” said Mr Muriuki.
Subsidiaries’ performance
Kingdom Bank, which is 90 percent owned by Co-op Bank, saw its net profit retreat to Sh527.59 million from Sh603 million.
Co-op Consultancy & Bancassurance Intermediary Limited posted a pre-tax profit of Sh1.15 billion from Sh824.3 million, while Co-operative Bank of South Sudan returned a pre-tax profit of Sh93.5 million from Sh33.8 million.
Co-op Trust Investment Services Limited contributed Sh624 million in pre-tax profit, more than double from Sh254.9 million as the subsidiary’s funds under management grew by 65.7 percent to Sh496.4 billion.
The review period saw Co-op Bank’s asset base grow 8.6 percent to Sh815.27 billion, while customer deposits grew 6.7 percent to Sh548.57 billion.
The loan book closed September at Sh406.52 billion compared to Sh381.34 billion in a similar period last year.
