Co-op Bank Posts 21.3% Rise in Q1 Profit to Ksh8.41B

Co-operative Bank of Kenya has kicked off 2026 with strong financial results after reporting a major increase in profits for the first quarter, driven by growth in lending, customer deposits, and digital banking transactions.

The lender posted a net profit of Ksh 8.41 billion for the three months ended March 2026, a 21.3 per cent jump from the Sh6.93 billion recorded during the same period last year.

Profit before tax also rose strongly to Ksh 11.37 billion from Ksh 9.63 billion in Q1 2025, continuing the bank’s consistent upward growth over the last few years.

The latest results come months after the bank announced a record full-year profit of Ksh 29.75 billion for 2025, up from Ksh 25.46 billion posted in 2024. The lender has steadily grown its earnings despite tough economic conditions, rising loan defaults, and pressure on businesses and households.

During the quarter under review, the bank’s total assets increased by 14.3 per cent to Ksh 884.6 billion.

Customer deposits rose to Ksh 612.2 billion from Ksh 524.9 billion last year, highlighting growing confidence among savers and customers.

The lender’s loan book also expanded significantly, with net loans and advances increasing to Sh436.8 billion. Investments in government securities rose to Ksh 272.9 billion.

Higher lending and returns from investments helped push net interest income to Sh15.98 billion, a 12.2 per cent rise compared to the same period last year.

Total operating income grew to Ksh 24.05 billion.

The bank also reported improvement in asset quality, with the non-performing loan ratio dropping to 14.5 per cent from 17 per cent recorded in Q1 2025.

Group Managing Director and CEO Gideon Muriuki said the results reflected the lender’s continued focus on resilience, innovation, and customer-centred banking.

“The strong performance is anchored on the successful implementation of the ‘Good to Great’ strategic plan and the Soaring Eagle Transformation Agenda,” Muriuki said.

He added that the bank would continue strengthening digital banking and financial inclusion programmes across the country.

Digital banking remained one of the lender’s biggest strengths during the quarter.

According to the bank, more than 90 per cent of customer transactions are now processed through digital channels, reducing reliance on physical banking halls.

The lender currently serves customers through 222 branches, over 16,200 Co-op Kwa Jirani agents, and 615 ATMs and cash deposit machines spread across Kenya and the wider region.

Its digital lending platform disbursed Ksh 19.11 billion in loans during the quarter alone, bringing cumulative digital loan disbursements since inception to more than Ksh 520 billion.

The bank also expanded its youth banking programme through its Youth Financial Services Division, which reached more than 100,000 young people with financial literacy programmes during the quarter.

Subsidiaries under the Group also delivered improved results.

Kingdom Bank nearly doubled its profit before tax to Ksh 446.2 million, while Co-optrust Investment Services Ltd more than doubled its earnings to ksh 335.2 million.

The strong start to the year positions Co-op Bank among Kenya’s best-performing lenders as banks continue benefiting from higher interest rates, digital banking growth, and increased customer activity.

The lender remains one of the country’s largest banks by customer numbers, largely supported by its long-standing relationship with SACCOs, SMEs, and retail customers across Kenya.