The Lower Eastern Times Opening The Third Eye
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Co-operative Bank has been ranked among Africa’s 25 strongest banks by capital for the first time, further cementing Kenya’s status as East Africa’s leading financial centre.
The latest The Banker Top 1,000 World Banks survey placed three Kenyan lenders among the continent’s best-capitalised financial institutions.
Co-operative Bank made its debut at position 842 globally and ranked 24th in Africa after recording Tier 1 capital of $1.1 billion (approximately Sh137.5 billion).
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The achievement boosted investor confidence, with the bank’s share price rising by 1.5 per cent to Sh35.25 at the close of trading, making it one of the week’s top performers on the Nairobi Securities Exchange (NSE).
The ranking follows another year of strong financial performance for the lender. For the financial year ending December 31, 2025, Co-operative Bank posted a net profit of Sh34.8 billion, representing a 10.7 per cent increase from the Sh31.4 billion reported the previous year.
The bank also declared a record dividend of Sh1.80 per share, resulting in a total shareholder payout of about Sh10.6 billion.
Published annually by UK-based financial magazine The Banker, the survey ranks banks based on Tier 1 capital, an internationally recognised measure of financial strength and a bank’s ability to absorb losses.
Unlike rankings based on profits or total assets, Tier 1 capital reflects a bank’s resilience, lending capacity and ability to withstand economic challenges.
KCB Group remained East Africa’s most strongly capitalised bank, climbing 23 places in the global rankings to position 549 with Tier 1 capital of $2.5 billion (about Sh316.7 billion).
Equity Bank followed closely at position 573 globally, posting Tier 1 capital of $2.312 billion (approximately Sh298.2 billion), leaving a gap of about $143 million (Sh18.4 billion) between the two competitors.
The close ranking highlights the ongoing competition between Kenya’s two largest lenders. While KCB retained its lead, Equity recorded stronger profit growth during 2025, meaning future rankings could change depending on earnings retention, capital growth, dividend decisions and regional expansion.
KCB’s improved performance was driven by growth in lending, increased customer deposits and stronger contributions from its regional subsidiaries, helping strengthen its capital base while supporting expansion across East Africa.
Kenya dominated the East African rankings, with three of the region’s four banks featured in Africa’s top 25. Tanzania’s CRDB was the only other East African lender on the list, reporting Tier 1 capital of $938 million (about Sh121 billion).
Across the continent, South Africa continued to dominate the rankings, occupying five of Africa’s top ten positions. Standard Bank remained Africa’s strongest bank by Tier 1 capital at $16.1 billion (about Sh2.08 trillion).
Morocco had the highest representation in Africa’s top 25 with six banks, followed by Nigeria with five, reflecting the strength of their banking industries.
Globally, Chinese banks continued to lead the rankings. The Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China and Bank of China occupied the top four positions, while JPMorgan Chase ranked fifth. Overall, seven Chinese state-owned banks featured among the world’s top ten banks by Tier 1 capital.
