Co-operative Bank of Kenya has reported a 27.2 per cent increase in profit after tax to KSh27.4 billion for the nine months ended September 30, 2026, up from KSh21.6 billion recorded during a similar period last year.
The lender’s profit before tax also grew by 19.6 per cent to KSh35.9 billion, compared to KSh30 billion in the corresponding period of 2025, supported by growth in lending, customer deposits and non-funded income.
The bank’s total assets expanded by 11.3 per cent to KSh907.4 billion from KSh815.3 billion, reflecting continued growth in its balance sheet and banking operations.
In its financial results released on November 11, the bank attributed the performance to progress under its 2025–2029 Good to Great Strategy and the Soaring Eagle Transformation Agenda.
Lending and Deposits Drive Growth
The bank’s lending business recorded significant growth, with net loans and advances increasing by 22.2 per cent to KSh496.9 billion.
Customer deposits rose by 14.8 per cent to KSh642.5 billion, strengthening the lender’s funding base and supporting its lending activities.
Net interest income increased by 12.7 per cent to KSh51 billion, while total operating income grew by 11.6 per cent to KSh75.2 billion, supported by improved lending performance and resilient non-funded income.
Operating expenses increased by 5.3 per cent, with the cost-to-income ratio before provisions standing at 46.4 per cent.
The bank also recorded an improvement in asset quality, with its non-performing loan (NPL) ratio declining to 12.9 per cent from 17.1 per cent a year earlier. Its IFRS coverage ratio improved to 82.2 per cent from 70.4 per cent, while the cost of risk declined to 1.4 per cent from 2.5 per cent.
Digital Banking and Agency Network Expand
Co-operative Bank continued to strengthen its digital banking operations, with approximately 94 per cent of customer transactions processed through alternative delivery channels.
Its agency banking network also recorded increased activity, with deposits generated through agents rising by 39 per cent to KSh139.37 billion, compared to KSh85.1 billion in the same period last year.
The lender operates 16,215 Co-op Kwa Jirani agents, 600 ATMs and cash deposit machines, alongside a 24-hour contact centre and 224 branches across Kenya, South Sudan and Kingdom Bank.
The bank also reported a growing diaspora customer base of more than 25,000 customers.
During the period, Kingdom Bank completed an upgrade of its core banking system to Finacle in October 2026, following earlier deployments at Co-op Bank Kenya and South Sudan.
MSMEs and Youth Banking Receive Boost
The lender continued to expand access to credit for individuals and businesses through its digital lending and MSME programmes.
Its E-Credit platform disbursed KSh66.6 billion during the third quarter of 2026, bringing cumulative disbursements since inception to more than KSh568.5 billion. The platform had reached 16.2 million cumulative loan customers.
The bank also onboarded 273,783 micro, small and medium enterprises (MSMEs) onto tailored banking packages, while 72,198 businesses benefited from capacity-building and training programmes.
MSMEs accounted for 16.7 per cent of the bank’s loan book and 23.7 per cent of customer deposits.
The lender also launched Ignite, a youth-focused financial services proposition targeting more than 10 million young customers in the medium term.
By September 2026, the bank had disbursed KSh47.5 billion to youth customers, supporting more than 585,000 young people in entrepreneurship, business expansion and income generation. More than 210,000 young people had also accessed financial literacy and empowerment programmes.
AI Transformation and Subsidiary Performance
The bank is also implementing Project Angaza, an enterprise-wide transformation programme aimed at integrating artificial intelligence, data and automation into its operations.
The initiative seeks to improve customer experiences, strengthen decision-making, increase productivity and enhance operational resilience through responsible and secure AI adoption.
Its subsidiaries also contributed to the overall performance. Kingdom Bank recorded profit before tax of KSh1.33 billion, representing a 61.8 per cent increase from KSh820.2 million.
Co-op Bancassurance Intermediary posted KSh1.39 billion in profit before tax, while Co-optrust Investment Services recorded KSh966.8 million, up 54.8 per cent from KSh624.7 million.
Co-op Bank of South Sudan reported profit before tax of KSh528 million, compared to KSh93.5 million a year earlier.
Shareholders to Receive Higher Interim Dividend
The bank’s board approved an interim dividend of KSh1.50 per share, representing a 50 per cent increase from the KSh1 paid during the corresponding period last year.
The dividend will be payable on December 4, 2026, to shareholders registered by November 25, 2026.
Group Managing Director and Chief Executive Officer Gideon Muriuki said the bank remained focused on delivering sustainable growth through its diversified banking model, strong customer base and digital capabilities.
The lender reported more than 10 million account holders, while its wider co-operative ecosystem is connected to approximately 15 million members.
The bank also highlighted its social investment initiatives, including scholarships benefiting 12,602 students through the Co-op Bank Foundation and the renovation and equipping of three orthopaedic wards at Kenyatta National Hospital, increasing inpatient capacity by 150 beds.