Co-operative Bank of Kenya released its financial results for the third quarter of 2025, reporting strong earnings growth supported by a solid expansion in operating income and a resilient balance sheet. The bank’s Profit After Tax (PAT) rose by 12.3% to Kshs 21.6 bn, up from Kshs 19.2 bn in Q3’2024. This impressive performance was largely driven by a 13.9% increase in total operating income, which grew to Kshs 67.4 bn from Kshs 59.2 bn in the same period last year. However, the gains were partially offset by a 15.4% surge in operating expenses, which rose to Kshs 37.7 bn from Kshs 32.7 bn in Q3’2024, reflecting the bank’s rising cost environment.
A major contributor to the bank’s improved earnings was the strong growth in Net Interest Income (NII), which increased by 22.8% to Kshs 45.3 bn, compared to Kshs 36.9 bn in Q3’2024. This reflects the bank’s ability to effectively leverage its interest-earning assets despite a tight macroeconomic environment. On the other hand, Non-Funded Income (NFI) slightly dipped by 0.8% to Kshs 22.1 bn, down from Kshs 22.3 bn the previous year, highlighting subdued performance in fees, commissions, and other non-interest revenue streams.
Operating expenses remained elevated, rising to Kshs 37.7 bn, a 15.4% increase, mainly due to a significant 31.9% rise in loan loss provisions, which climbed to Kshs 7.4 bn from Kshs 5.6 bn in Q3’2024. This indicates a cautious stance by the bank in safeguarding the loan book amid persistent credit risks in the economy.
The bank’s balance sheet also expanded notably, with total assets increasing by 8.6% to Kshs 815.3 bn, up from Kshs 750.8 bn in Q3’2024. This growth was largely driven by a 20.7% increase in holdings of government securities, which rose to Kshs 255.4 bn. Customer deposits grew by 6.7% to Kshs 548.6 bn, underscoring continued customer confidence and strong liquidity.
Other highlights from the results show that Profit Before Tax (PBT) increased by 12.1% to Kshs 30.0 bn, compared to Kshs 26.8 bn in Q3’2024. The Board of Directors also recommended an interim dividend of Kshs 1.0 per share for Q3’2025, representing an annualized dividend yield of 9.0% and a payout ratio of 27.2% as of 13th November 2025. Overall, Co-operative Bank’s Q3’2025 performance demonstrates resilient profitability, strong asset growth, and prudent risk management.
