Co-op Bank delivers Q1 profit of $53.3 million under Gideon Muriuki

Key Points

• Co-op Bank grew Q1 net profit to $53.3 million, a 5.3% rise year-on-year, boosted by digital lending and strong interest income under its Soaring Eagle strategy.
• Net interest income surged 21.7% to $109.9 million, while the MCo-op Cash platform disbursed $147.8 million in digital loans, driving financial inclusion and growth.
• Operational efficiency improved with a reduced cost-to-income ratio of 45.5%, as total assets climbed 8.3% to $6 billion, solidifying its top-tier market position.

Co-operative Bank Group (Co-op Bank), led by Kenyan banking magnate and longtime CEO Gideon Muriuki, kicked off 2025 on a positive note, building on the previous year’s success and aligning with its strategic focus on sustainable growth, resilience, and agility while riding on its ‘Soaring Eagle’ transformation agenda. 

For the first three months of its 2025 fiscal year, the banking group booked a net profit of $53.3 million, driven by robust digital lending and net interest income growth. 

Digital lending and efficiency drive Co-op Bank profit

According to its latest release, the Nairobi-listed lender started the year with a 5.3 percent year-on-year increase in net profit, climbing to Ksh6.9 billion ($53.3 million) from Ksh6.6 billion ($48.76 million) the previous year. The single-digit growth was powered by net interest income, which grew 21.7 percent to Ksh14.2 billion ($109.91 million). Non-interest income remained steady, dipping slightly by 1.9 percent from Ksh7.1 billion ($54.95 million) to Ksh6.9 billion ($53.4 million).

Co-op’s digital push—anchored by its MCo-op Cash mobile wallet—disbursed KSh19.1 billion ($147.82 million) in digital loans during the quarter. Loans to MSMEs stood at KSh3.04 billion ($23.53 million), accounting for 16.6 percent of the total loan book. The bank also improved operational efficiency, trimming its cost-to-income ratio to 45.5 percent, down from 59 percent in 2014. Customer deposits rose 9 percent year-on-year to KSh525.2 billion ($4.07 billion), while net loans increased 1.7 percent to KSh384.5 billion ($2.98 billion).

Subsidiaries, including Co-op Trust Investment, Bancassurance, and Kingdom Bank, posted double-digit growth. Commenting on the performance, Co-op Bank’s CEO, Gideon Muriuki said: “We continue to invest in a competitive team to support current operations and pursue new growth opportunities across the business,” Muriuki said, citing progress under the bank’s “Soaring Eagle” transformation agenda focused on sustainability, innovation, and resilience.

Asset growth and subsidiary contributions under Muriuki

Co-op Bank, a major player in East Africa’s financial sector, boasts several subsidiaries, including Kingdom Securities, Co-op Trust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and the Co-operative Bank of South Sudan.  

Muriuki, who holds a 2 percent stake in the bank, has seen the value of his holding rise to KSh1.89 billion ($14.68 million), securing his position among the wealthiest individual investors on the Nairobi Securities Exchange. Co-operative Bank, with total assets of KSh774.1 billion ($5.99 billion), experienced 8.3 percent growth, reinforcing Co-op Bank’s position as one of Kenya’s top financial institutions. It remains committed to strengthening its digital capabilities and expanding its regional footprint as part of its long-term growth strategy.