Co-op Bank first quarter profit up 5.3pc to Sh6.9b amid expansion push

Co-operative Bank of Kenya (Co-op Bank) has reported a by 5.3 per cent growth in profit after tax for the first quarter of 2025, driven by income growth, as the tier one lender expands its footprint across Kenya and South Sudan. In results released Thursday, the bank said its net earnings reached Sh6.9 billion for the three months, compared to Sh6.6 billion in the same period last year. This came as Co-op Bank was named one of Africas fastest growing companies in 2025 by FT of London. FT said it based the ranking on the growth in key performance metrics between 2020 and 2023 including absolute and revenue growth, compounded annual growth rate and number of employees. The bank's profit growth in the first quarter was supported by a 12.8 per cent rise in total operating income to Sh21.2 billion, compared to Sh18.8 billion the previous year. This was backed by a Sh21.7 per cent jump in net interest income to Sh14.2 billion. "The strong performance by the bank is in line with the Group's strategic focus on sustainable growth, resilience, and agility," Co-operative Bank Group Chief Executive Gideon Muriuki said in a statement. The lender's total assets grew by 8.3 per cent to Sh774.1 billion, while customer deposits reached Sh525.2 billion, a 9.0 per cent rise. Co-operative Bank is significantly increasing its branch network. It has opened 15 new branches this year, bringing its total to 212, including five in South Sudan. Recent openings include branches in Kibwezi, Imaara Mall in Nairobi, Ugunja, Luanda, Isibania, Maai Mahiu, Dagoretti Market, Marimanti, Ruiru Nord Mall, Naromoru, Eldoret Airport Road, Eldama Ravine, Westlands Square Executive Centre, Eastleigh BBS Mall, and Rumuruti. Its subsidiary, Kingdom Bank, has also been expanding, recently opening its 23rd branch in Machakos County. In South Sudan, the bank opened its fifth branch in Wau. Co-op Bank is also focused on digital channels, with over 90 per cent of customer transactions now conducted through alternative delivery channels, including mobile and internet banking, and a network of over 15,594 agents. It said its MCo-op Cash mobile wallet disbursed Sh19.1 billion in loans during the quarter, averaging Sh6.37 billion per month. The bank is also targeting the MSME sector, with over 243,155 customers taking up its MSME packages, and 67,000 receiving business management skills training. The bank said it has disbursed Sh3.04 billion to MSMEs through its mobile E-Credit solution, with MSMEs now accounting for 16.6 per cent of its total loan book. Its subsidiaries also reported strong results. Co-op Bancassurance Intermediary's pre-tax profit was Sh402.1 million while Co-op Trust Investment Services saw its pre-tax profit jump by 113.9 per cent to Sh161.5 million. Kingdom Bank recorded pre-tax profit of Sh224.7 million. Muriuki said the bank is pursuing strategic initiatives focused on resilience and growth across various economic sectors. Co-op Bank is the second of two major lenders to announce its earnings this week, offering investors insight into the possible strength of commercial lenders in a challenging economic climate. Stanbic Bank Kenya reported a 16.6 per cent drop in net profit for the first quarter ended March owing to a shrink in non-interest income.

Co-op Bank first quarter profit up 5.3pc to Sh6.9b amid expansion push

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Co-op Bank first quarter profit up 5.3pc to Sh6.9b amid expansion push

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