Co-operative Bank Group has posted the strongest first-quarter performance in history, with net profit rising to Sh8.4 billion in the three months to March 2026.
This is a 21.3 per cent increase compared to Sh6.9 billion recorded during a similar period last year.
The lender has attributed the results to gains from its 2025–2029 “Good to Great” strategy and the ongoing “Soaring Eagle” transformation agenda, which the bank says continues to strengthen operational efficiency, digital growth and customer expansion.
Gross profit for the quarter grew by 18.1 per cent to Sh11.4 billion from Sh9.63 billion in the same period last year, while operating income increased by 13.6 per cent to Sh24.05 billion, supported by growth in both net interest income and non-funded income streams.
Net interest income rose by 12.2 per cent to Sh15.98 billion, helping lift the Group’s total assets by 14.3 per cent to Sh884.6 billion from Sh774.1 billion previously.
Customer deposits grew by 16.6 per cent to Sh612.2 billion, underscoring strong customer confidence in the lender, while net loans and advances increased by 13.6 per cent to Sh436.8 billion.
The bank also expanded its investment in government securities by 12.7 per cent to Sh272.9 billion, supporting liquidity and income diversification.
Borrowed funds rose 13.5 per cent to Sh62.2 billion as the lender deepened partnerships with external financiers to broaden its funding base.
Despite increased business activity, operating expenses rose at a slower pace of 8.4 per cent, with the cost-to-income ratio before provisions improving to 44.3 per cent, reflecting continued efficiency gains.
The strong earnings translated into higher shareholder returns, with return on average equity standing at 20.4 per cent. Shareholders’ funds increased by 11.5 per cent to Sh173.8 billion, supported by retained earnings growth and a stronger capital base.
The lender maintained strong liquidity and capital buffers, posting a liquidity ratio of 63.4 per cent and a total capital to risk-weighted assets ratio of 23.2 per cent.
Co-op Bank also reported improved asset quality, with the non-performing loan ratio declining to 14.5 per cent from 17 per cent in Q1 2025. IFRS coverage stood at 80.1 per cent, reflecting prudent provisioning.
“Our subsidiaries continued to make a positive contribution to performance, reinforcing the strength of our universal banking model,” Group Managing Director and CEO Gideon Muriuki said in a statement.
Among the subsidiaries, Kingdom Bank nearly doubled its gross profit to Sh446.2 million from Sh224.7 million, driven by expansion in retail and business banking.
Co-op Bancassurance Intermediary posted a 39.5 per cent increase in profit before tax to Sh560.4 million, supported by deeper insurance penetration among customers.
Co-opTrust Investment Services grew its funds under management to Sh489 billion, while profit before tax more than doubled to Sh335.2 million.
Meanwhile, Co-op Bank South Sudan returned to profitability with a pre-tax profit of Sh99 million from a loss of Sh47 million previously, while Kingdom Securities posted a 38 per cent growth in profit before tax to Sh57.7 million on increased capital markets activity.
The lender also received continental recognition after being listed among Africa’s Fastest Growing Companies 2026 by the Financial Times and research firm Statista
Co-op Bank said its digital banking strategy continued to gain traction, with more than 90 per cent of customer transactions now processed through alternative channels, including mobile banking, internet banking and USSD platforms.
The bank currently operates a network of 222 branches across Kenya and South Sudan, supported by more than 16,200 Co-op Kwa Jirani agents, 615 ATMs and cash deposit machines, and 619 SACCO front offices.
Its diaspora banking segment also continued to grow, with customer numbers surpassing 22,000.
The lender further expanded its support to small businesses and financial inclusion initiatives. During the quarter, digital E-credit disbursements reached Sh19.11 billion, bringing cumulative disbursements since inception to more than Sh520 billion.
More than 264,000 MSMEs are currently onboarded onto the bank’s tailored SME packages, while over 71,000 businesses received training and capacity-building support during the quarter.
Small traders accounted for 16.8 per cent of the bank’s loan book and 22.6 per cent of customer deposits, highlighting the segment’s growing contribution to the lender’s business.
The Group also said Kingdom Bank is upgrading its core banking platform to the Finacle banking system already in use at Co-op Bank Kenya and Co-op Bank South Sudan.
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