Co‑operative Bank of Kenya has reported its strongest quarterly performance in history, posting a profit before tax of KSh11.37 billion for the three months ended March 31, 2026. The result, announced on May 13, represents an 18.1 per cent increase from KSh9.63 billion recorded in the same period last year.
Profit after tax rose even faster, climbing 21.3 per cent to KSh8.41 billion compared to KSh6.93 billion in Q1 2025. Group Managing Director and CEO Gideon Muriuki described the outcome as “the best‑ever performance to be recorded in a single quarter,” crediting gains made under the bank’s 2025‑2029 Good to Great strategy and the Soaring Eagle transformation agenda.
The lender’s balance sheet expanded significantly. Total assets grew by 14.3 per cent to KSh884.6 billion, while customer deposits rose by 16.6 per cent to KSh612.2 billion. Net loans and advances increased by 13.6 per cent to KSh436.8 billion, reflecting strong demand for credit from households and businesses. Investment in government securities also rose to KSh272.9 billion from KSh242.1 billion last year.
Operating income climbed 13.6 per cent to KSh24.05 billion, driven by higher interest earnings and growth in non‑funded income. Operating expenses rose by 8.4 per cent, but the bank maintained a cost‑to‑income ratio before provisions at 44.3 per cent. Asset quality improved, with the non‑performing loan ratio falling to 14.5 per cent from 17 per cent a year earlier. Liquidity stood at 63.4 per cent, while total capital to risk‑weighted assets ratio was 23.2 per cent.
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Digital banking remained a key growth driver. More than 90 per cent of customer transactions now occur through alternative channels such as mobile, internet, and USSD platforms. The bank disbursed KSh19.11 billion in digital loans during the quarter via its E‑Credit platform, pushing cumulative disbursements past KSh520 billion since launch.
Co‑op Bank’s physical and digital footprint also expanded. It now operates 16,200 Co‑op Kwa Jirani agents, 615 ATMs and cash deposit machines, and 222 branches across Kenya and South Sudan. The customer base grew to 9.8 million account holders, including over 22,000 diaspora clients. The workforce increased to 6,271 employees after 383 new jobs were created in Q1.
Support for micro, small, and medium‑sized enterprises (MSMEs) deepened, with more than 264,000 businesses onboarded onto specialised banking packages. Another 71,043 MSMEs received training and support programmes. The bank also expanded youth banking, with over 100,000 young people accessing financial literacy programmes through its dedicated Youth Financial Services division.
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Subsidiaries delivered strong results. Kingdom Bank nearly doubled profit before tax to KSh446.2 million from KSh224.7 million. Co‑op Bancassurance Intermediary posted a 39.5 per cent increase to KSh560.4 million, while Co‑optrust Investment Services more than doubled earnings to KSh332.5 million.
Co‑op Bank of South Sudan returned to profitability, recording KSh99 million in profit before tax compared to a KSh47 million loss last year.
By Masaki Enock
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