Co-op Bank Announces 50% Dividend Increase as Profit Surges to Ksh35.9 Billion

Co-operative Bank of Kenya has announced a 50 per cent increase in its interim dividend after recording a significant rise in profits during the first nine months of 2026.

The lender’s board has approved a dividend payment of Ksh1.50 per share, up from Ksh1 paid during the corresponding period last year, following strong financial results for the nine months ending September 30, 2026.

Group Managing Director and Chief Executive Officer Dr Gideon Muriuki announced that the dividend will be paid on December 4, 2026, to shareholders whose names will appear in the company’s register as of November 25.

The bank recorded a profit before tax of Ksh35.9 billion, representing a 19.6 per cent increase from the Ksh30 billion reported during the same period in 2025.

Its profit after tax also climbed by 27.2 per cent to Ksh27.4 billion, compared to Ksh21.6 billion recorded in the previous year.

The group’s total assets expanded by 11.3 per cent to Ksh907.4 billion, while customer deposits increased by 14.8 per cent to Ksh642.5 billion.

Net loans and advances grew by 22.2 per cent to Ksh496.9 billion, with investments in government securities reaching Ksh271.1 billion.

The bank also reported an improvement in its loan quality, with its non-performing loans ratio declining from 17.1 per cent to 12.9 per cent. Its IFRS coverage ratio strengthened to 82.2 per cent.

Muriuki attributed the performance to the implementation of the bank’s 2025-2029 Good to Great Strategy and its Soaring Eagle Transformation Agenda.

Digital banking continued to account for the bulk of customer activity, with approximately 94 per cent of transactions conducted through alternative delivery channels.

The lender also disbursed Ksh66.6 billion through its E-credit platform during the period, bringing cumulative digital loan disbursements to more than Ksh568.5 billion.

Its youth-focused Ignite programme extended financial support worth Ksh47.5 billion to more than 585,000 young entrepreneurs and customers.

Among its subsidiaries, Kingdom Bank recorded a 61.8 per cent increase in profit before tax to Ksh1.33 billion, while Co-op Bancassurance posted Ksh1.39 billion.

The latest results reinforce Co-op Bank’s strong financial position as it rewards shareholders with a higher interim dividend.

https://www.kenyans.co.ke/featured/129310-co-op-bank-profit-tax-hits-ksh359-billion-dividend-rises-50

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