Co-op Bank net profit jumps 21.3% to Ksh.8.41 billion

Co-operative Bank has posted a record net profit of Ksh.8.41 billion for the first quarter ended March 2026, reflecting a 21.3 percent growth from Ksh.6.93 billion recorded during a similar period last year, driven by expansion in lending, customer deposits and digital banking transactions.

The lender’s Profit Before Tax rose by 18.1 percent to Ksh.11.37 billion from Ksh.9.63 billion, marking the strongest quarterly performance in the bank’s history.

Group Managing Director and CEO Gideon Muriuki attributed the performance to gains realised under the lender’s 2025–2029 “Good to Great” strategy and the “Soaring Eagle” transformation agenda.

The bank’s balance sheet continued to expand during the period, with total assets increasing by 14.3 percent to Ksh.884.6 billion, up from Ksh.774.1 billion a year earlier.

Customer deposits rose by 16.6 percent to Ksh.612.2 billion, while net loans and advances grew by 13.6 percent to Ksh.436.8 billion, reflecting sustained growth in business activity and customer confidence.

Operating income climbed by 13.6 percent to Ksh.24.05 billion, supported by growth in net interest income and non-funded income streams. Net interest income alone increased by 12.2 percent to Ksh.15.98 billion.

The lender also reported improved operational efficiency, with operating expenses rising at a slower pace of 8.4 percent. Its cost-to-income ratio before provisions stood at 44.3 percent, underlining ongoing efficiency gains.

Asset quality improved significantly during the quarter, with the non-performing loan ratio declining to 14.5 percent from 17 percent recorded in Q1 2025. IFRS coverage stood at 80.1 percent, reflecting prudent provisioning against loan defaults.

The bank continued to strengthen its digital banking footprint, with more than 90 per cent of customer transactions processed through alternative delivery channels such as mobile banking, internet banking, USSD and agency banking.

Its distribution network now includes more than 16,200 Co-op Kwa Jirani agents, 615 ATMs and cash deposit machines, and 222 branches spread across Kenya and South Sudan.

The lender also expanded its MSME and digital credit operations, with E-Credit disbursements reaching Ksh.19.11 billion during the quarter. Since inception, the digital lending platform has disbursed more than Ksh.520 billion.

Co-op Bank’s subsidiaries also posted strong growth. Kingdom Bank nearly doubled Profit Before Tax to Ksh.446.2 million, while Co-optrust Investment Services more than doubled earnings to Ksh.335.2 million.

The bank further noted that it had recently been recognised among Africa’s Fastest Growing Companies 2026 by the Financial Times and named Best Bank in Kenya 2026 by Global Finance magazine.