Co-op Bank Posts Record Ksh11.37 Billion Q1 Profit as Customer Deposits Surge
Co-operative Bank of Kenya has reported a record-breaking financial performance for the first quarter of 2026, posting a profit before tax of Ksh11.37 billion, marking an 18.1 per cent increase from the Ksh9.63 billion recorded during the same period in 2025.
The lender’s profit after tax also rose sharply by 21.3 per cent to Ksh8.41 billion, up from Ksh6.93 billion a year earlier, in what the bank described as its “best-ever performance to be recorded in a single quarter.”
In a statement released on Wednesday, May 13, the bank attributed the impressive results to gains realised under its 2025–2029 “Good to Great” strategic plan and the ongoing “Soaring Eagle” Transformation Agenda aimed at accelerating growth, operational efficiency, and digital banking expansion.
The Group’s balance sheet continued to strengthen significantly, with total assets rising by 14.3 per cent to Ksh884.6 billion from Ksh774.1 billion in Q1 2025. Customer deposits also registered strong growth, climbing 16.6 per cent to Ksh612.2 billion, reflecting growing public confidence in the lender amid increased competition in the banking sector.
According to the bank, net loans and advances expanded by 13.6 per cent to Ksh436.8 billion, while investment in government securities rose by 12.7 per cent to Ksh272.9 billion, helping to support liquidity and diversify earnings streams.
Net interest income increased by 12.2 per cent to Ksh15.98 billion, while total operating income rose 13.6 per cent to Ksh24.05 billion, boosted by growth in both funded and non-funded income channels.
Despite the expansion, operating expenses grew at a slower rate of 8.4 per cent, with the cost-to-income ratio before provisions improving to 44.3 per cent, highlighting improved efficiency in the bank’s operations.
The bank’s return on average equity stood at 20.4 per cent, while shareholders’ funds grew 11.5 per cent to Ksh173.8 billion, largely supported by retained earnings.
Group Managing Director and Chief Executive Officer Dr Gideon Muriuki said the lender’s growth continues to be driven by its deep roots within Kenya’s co-operative movement.
“Our strong performance demonstrates the resilience of our business model and the unique advantages of being rooted in the largest co-operative movement in Africa,” Muriuki stated.
He noted that the movement currently serves over 15 million members across the region, giving the bank a broad and loyal customer base.
The bank’s subsidiaries also posted strong performances across multiple business segments.
Kingdom Bank nearly doubled its profit before tax to Ksh446.2 million from Ksh224.7 million recorded during the same period last year, driven by rapid growth in retail and SME banking.
Co-op Bancassurance Intermediary Ltd reported a 39.5 per cent rise in profit before tax to Ksh560.4 million, supported by deeper insurance penetration among customers.
Meanwhile, Co-optrust Investment Services more than doubled its profit before tax to Ksh335.2 million from Ksh161.5 million as Funds Under Management climbed to Ksh489 billion.
Kingdom Securities also recorded a 38 per cent jump in profit before tax to Ksh57.7 million, buoyed by heightened activity in the capital markets.
In a notable turnaround, Co-op Bank of South Sudan returned to profitability after posting a profit before tax of Ksh99 million, compared to a Ksh47 million loss during Q1 2025.
The lender further revealed that more than 90 per cent of all customer transactions are now processed through alternative digital channels as it accelerates its digital transformation strategy.
Its current network includes 222 branches across Kenya and South Sudan, 615 ATMs and cash deposit machines, over 16,200 Co-op Kwa Jirani agents, and 619 SACCO front offices.
The strong financial performance comes just weeks after the lender was recognised among Africa’s Fastest Growing Companies 2026 by the Financial Times of London and named Best Bank in Kenya 2026 by Global Finance.
Co-op Bank’s customer base has now surpassed 9.8 million account holders, cementing its position as one of Kenya’s largest financial institutions by reach and customer footprint.
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