Co-operative Bank of Kenya opened 2026 with its strongest quarterly performance on record, posting a net profit of Sh8.41 billion for the three months ended 31 March 2026, a 21.3 per cent jump from Sh6.93 billion in the same period a year earlier.
The results, approved by the Board of Directors on 13 May 2026, cut through a difficult economic environment where many Kenyan businesses have struggled with rising costs and shrinking margins.
What Drove the Growth
Total operating income for the Group climbed 13.6 per cent to Sh24.05 billion, anchored by stronger lending activity and a meaningful contribution from the bank’s non-banking subsidiaries. Net interest income rose 12.2 per cent to Sh15.98 billion, supported by a 13.6 per cent growth in loans and advances to Sh436.8 billion and a 12.7 per cent increase in government securities to Sh272.9 billion.
Group Managing Director and CEO Gideon Muriuki described the result as the best single quarter in the bank’s history, attributing it to operational discipline under the bank’s “Soaring Eagle” transformation agenda and its 2025 to 2029 “Good to Great” strategy.
Subsidiaries That Pulled Their Weight
Kingdom Bank nearly doubled its profit before tax, growing 98.6 per cent to Sh446.2 million. Co-optrust Investment Services more than doubled its profit before tax, recording a 107.6 per cent rise to Sh335.2 million. Co-op Bancassurance Intermediary grew profit before tax by 39.5 per cent to Sh560.4 million. Even the South Sudan operation turned the corner, swinging from a Sh47 million pretax loss to a Sh99 million pretax profit.
| Subsidiary | Q1 2026 Profit Before Tax (KShs Million) | Growth |
|---|---|---|
| Kingdom Bank | 446.2 | +98.6% |
| Co-optrust Investment Services | 335.2 | +107.6% |
| Co-op Bancassurance Intermediary | 560.4 | +39.5% |
| South Sudan Operation | 99.0 | Swung from Sh47m loss |
A Balance Sheet That Keeps Expanding
The Group’s total assets grew 14.3 per cent to Sh884.6 billion. Customer deposits climbed 16.6 per cent to Sh612.2 billion, while shareholders’ funds rose 11.5 per cent to Sh173.8 billion. These are not small movements — they reflect a bank that is expanding its footprint even as the broader economy tightens.
| Key Balance Sheet Item | 31 March 2026 (KShs Billion) | Growth vs Q1 2025 |
|---|---|---|
| Total Assets | 884.6 | +14.3% |
| Customer Deposits | 612.2 | +16.6% |
| Loans and Advances | 436.8 | +13.6% |
| Shareholders’ Funds | 173.8 | +11.5% |
| Government Securities | 272.9 | +12.7% |
Efficiency, Asset Quality and Jobs
Operating expenses grew at 8.4 per cent — well below the pace of income growth — which pushed the cost-to-income ratio down to 44.3 per cent. That discipline translated directly into better returns for shareholders.
Asset quality also improved materially. The non-performing loan ratio fell to 14.5 per cent from 17 per cent in Q1 2025, a meaningful reduction that signals tighter credit management and a gradually healing loan book.
The bank bucked the national trend of corporate retrenchment, growing its workforce to 6,271 from 5,888 a year earlier. Those 383 net new jobs stand in sharp contrast to the layoffs and hiring freezes seen across other sectors of Kenya’s economy.
Digital Channels and the Push for Young Customers
More than 90 per cent of customer transactions now flow through non-branch channels. The bank’s e-credit platform disbursed Sh19.11 billion during the quarter, bringing total cumulative disbursements since launch past Sh520 billion. These numbers confirm that digital banking is no longer a supplementary channel — it is the primary one.
Looking ahead, Co-op Bank has formalised a dedicated Youth Financial Services division with a target of reaching 10 million young customers. Micro, small and medium enterprises (MSMEs) now account for 16.8 per cent of the total loan book, underscoring a deliberate shift toward financing smaller businesses that form the backbone of Kenya’s economy.
An African Recognition That Adds Context
The results landed the same week that the Financial Times of London named Co-op Bank among Africa’s Fastest Growing Companies in 2026. The ranking, compiled with research firm Statista, measures compound revenue growth between 2021 and 2024, giving independent weight to what the quarterly numbers already show.
What Comes Next
Attention now turns to how other tier-one lenders, including KCB Group, Equity Group Holdings, NCBA Group and Absa Bank Kenya, will perform when they release their own first-quarter results in the coming days. Co-op Bank’s performance sets a high bar. Whether it reflects a broader banking sector resilience or a result built on the bank’s specific strategic choices will become clearer once its peers report. Either way, Q1 2026 marks a quarter that Co-operative Bank will measure all future quarters against.
