A broad-based expansion in lending, steady growth in fee-based income, and improved performance across subsidiaries lifted Co-operative Bank Group to a profit before tax of Ksh 11.37 billion for the quarter ended March 31, 2026, marking an 18.1% rise from Ksh 9.63 billion recorded in the same period last year.
The Co-operative Bank of Kenya reported that profit after tax rose 21.3% to Ksh 8.41 billion from Ksh 6.93 billion in Q1 2025, describing the performance as “the best-ever performance to be recorded in a single quarter.”
The bank linked the results to progress under its 2025–2029 “Good to Great” strategy and the ongoing “Soaring Eagle” Transformation Agenda, which continue to shape balance sheet expansion and income diversification efforts across its core banking and subsidiary businesses.
Management said the strategic direction is anchored on strengthening core lending while widening non-funded income streams and deepening efficiency across operations in a competitive banking environment.
Total assets expanded 14.3% to Ksh 884.6 billion from Ksh 774.1 billion in the same period last year, supported by strong deposit mobilisation which rose 16.6% to Ksh 612.2 billion, reflecting sustained customer confidence and liquidity growth across retail and corporate segments.
Net loans and advances grew 13.6% to Ksh 436.8 billion, while holdings in government securities rose 12.7% to Ksh 272.9 billion, a positioning the bank said is designed to support liquidity management while maintaining stable returns.
Net interest income increased 12.2% to Ksh 15.98 billion, while total operating income rose 13.6% to Ksh 24.05 billion, supported by growth in both funded and non-funded income streams across the group’s diversified operations.
Operating expenses rose at a slower pace of 8.4%, easing the cost-to-income ratio before provisions to 44.3%, while return on average equity stood at 20.4%, supported by retained earnings that lifted shareholders’ funds 11.5% to Ksh 173.8 billion.
Commenting on the performance, the group said efficiency gains and digital adoption continue to play a central role in cost control and revenue expansion, with more than 90% of customer transactions now processed through alternative delivery channels outside physical branches.
“The unique advantages of being rooted in the largest co-operative movement in Africa,” Group Managing Director and Chief Executive Officer Dr Gideon Muriuki said, citing the group’s 15 million-member ecosystem as a key driver of its customer base, which now stands at over 9.8 million account holders.
Subsidiaries recorded broadly improved results, with Kingdom Bank posting a profit before tax of Ksh 446.2 million, almost double the Ksh 224.7 million recorded a year earlier, driven by expansion in retail and business banking activities.
Co-op Bancassurance Intermediary Ltd posted a 39.5% increase in profit to Ksh 560.4 million, while Co-optrust Investment Services more than doubled its profit before tax to Ksh 335.2 million, with funds under management reaching Ksh 489 billion.
Kingdom Securities recorded a 38% rise in profit before tax to Ksh 57.7 million, supported by increased capital markets activity during the period.
Co-operative Bank of South Sudan returned to profitability, posting Ksh 99 million in profit before tax compared with a loss of Ksh 47 million in Q1 2025, which the group attributed to improved operational performance in a challenging market environment.
The group’s distribution network now spans 222 branches across Kenya and South Sudan, 615 ATMs and cash deposit machines, and more than 16,200 Co-op Kwa Jirani agents, alongside 619 SACCO front office service points supporting last-mile banking access.
Co-operative Bank has also been listed among Africa’s Fastest Growing Companies 2026 by the Financial Times of London and named Best Bank in Kenya 2026 by Global Finance, reflecting its expanding regional profile within the financial services sector.
