Co-operative Bank of Kenya has reported a record-breaking financial performance for the first quarter ended March 31, 2026, posting a Profit Before Tax of KSh 11.37 billion compared to KSh 9.63 billion recorded during the same period in 2025.
The lender said the results represent an 18.1 per cent growth and mark the best-ever quarterly performance in the bank’s history. Profit After Tax rose by 21.3 percent to KSh 8.41 billion from KSh 6.93 billion posted in Q1 2025.
The bank attributed the strong performance to gains made under its 2025–2029 “Good to Great” Strategy and the ongoing “Soaring Eagle” Transformation Agenda.
The announcement comes shortly after Co-op Bank was listed among Africa’s Fastest Growing Companies 2026 by the Financial Times of London in collaboration with Statista.
Highlights of Q1 2026 Performance
The bank recorded strong growth across key financial indicators during the quarter.
Return on Average Equity stood at 20.4 percent, reflecting sustained shareholder value creation.
Total Assets increased by 14.3 percent to KSh 884.6 billion from KSh 774.1 billion in Q1 2025, while Customer Deposits grew by 16.6 percent to KSh 612.2 billion.
Net loans and advances rose by 13.6 percent to KSh 436.8 billion, supported by continued lending activity across key sectors of the economy.
Government Securities increased by 12.7 percent to KSh 272.9 billion, strengthening both liquidity and earnings diversification.
Borrowed funds rose by 13.5 percent to KSh 62.2 billion as the bank expanded partnerships with external financiers to diversify its funding base.
Shareholders’ Funds increased by 11.5 per cent to KSh 173.8 billion, supported by retained earnings growth and a stronger capital position.
Net Interest Income climbed by 12.2 percent to KSh 15.98 billion, while Operating Income increased by 13.6 percent to KSh 24.05 billion.
Operating expenses grew by 8.4 per cent, with the cost-to-income ratio before provisions improving to 44.3 percent, reflecting operational efficiency gains.
The Group maintained strong liquidity and capital adequacy levels, with a Liquidity Ratio of 63.4 percent and Total Capital to Risk Weighted Assets at 23.2 percent.
Asset quality also improved, with the Non-Performing Loans ratio declining to 14.5 percent from 17 percent recorded in Q1 2025. IFRS coverage stood at 80.1 percent.
Digital Leadership and Scale
Co-op Bank continued to strengthen its digital banking ecosystem, with more than 90 percent of customer transactions processed through alternative delivery channels.
The bank said its omni-channel platform, covering mobile, internet and USSD banking services, continues to support efficient and convenient customer service delivery.
The lender’s distribution infrastructure includes over 16,200 Co-op Kwa Jirani agents, 615 ATMs and Cash Deposit Machines, and a 24-hour contact centre.
The Group maintained a physical network of 222 branches, comprising 189 branches in Kenya, six in South Sudan and 27 under Kingdom Bank.
In addition, the bank works with 619 SACCO front offices, reinforcing its integration within the co-operative movement.
Customer reach also expanded through more than 22,000 Diaspora Banking customers.
Staff numbers increased to 6,271 employees, creating 383 new jobs during the quarter.
MSME, E-Credit and Financial Inclusion
The Group continued to deepen financial inclusion through its MSME and digital lending platforms.
E-Credit disbursements reached KSh 19.11 billion during the quarter, while cumulative disbursements since inception surpassed KSh 520 billion.
Co-op Bank said over 264,000 MSMEs are currently onboarded onto its tailored business packages.
Additionally, 71,043 MSMEs benefited from capacity-building and business training programmes aimed at strengthening enterprise resilience and financial literacy.
MSMEs accounted for 16.8 percent of the bank’s loan book and 22.6 percent of customer deposits.
The bank also announced that Kingdom Bank is upgrading its core banking system to the Finacle Core Banking platform already used by Co-op Bank Kenya and Co-op Bank South Sudan.
Youth Financial Services (YFS)
The Group accelerated its youth banking strategy during the quarter as it seeks to serve over 10 million young customers in the medium term.
The bank established a dedicated Youth Financial Services Division and appointed a substantive director to oversee the segment.
More than 100,000 young people accessed financial literacy programmes during the quarter.
The Youth Financial Services proposition offers digital account opening, savings, investments, credit access, financial literacy and business support services.
Through the Co-op Bank App, young customers can also access Money Market Fund and bond investment solutions digitally.
Performance of Subsidiaries
The Group’s subsidiaries posted strong growth during the quarter.
Kingdom Bank recorded Profit Before Tax of KSh 446.2 million, representing a 98.6 percent increase from KSh 224.7 million posted in Q1 2025.
Co-op Bancassurance Intermediary Ltd posted Profit Before Tax of KSh 560.4 million, up 39.5 percent from the previous year.
Co-optrust Investment Services Ltd reported Funds Under Management of KSh 489 billion, while Profit Before Tax grew by 107.6 percent to KSh 335.2 million.
Co-op Bank of South Sudan Ltd returned to profitability with a Profit Before Tax of KSh 99 million compared to a loss of KSh 47 million in Q1 2025.
Kingdom Securities Ltd posted Profit Before Tax of KSh 57.7 million, reflecting 38 percent growth driven by increased capital markets activity.
Sustainability, ESG and Impact
The bank said it continued integrating environmental, social and governance principles into its operations and long-term strategy.
Co-op Bank reported progress in climate risk management through alignment with IFRS S1 and S2 standards and the Kenya Green Finance Taxonomy.
The lender also received the ESG Reporting – GRI Category award at the 2025 FiRe Awards in recognition of excellence in sustainability reporting and transparency.
Through the Co-op Bank Foundation, over 12,545 students have benefited from scholarship programmes since inception.
Meanwhile, Co-op Consultancy Services executed 3,925 co-operative advisory mandates during Q1 2026.
Awards and Recognition
The Group’s performance and innovation continued to receive international recognition.
Financial Times listed Co-op Bank among Africa’s Fastest Growing Companies 2026.
In addition, Global Finance named the lender the Best Bank in Kenya 2026, citing its digital transformation, customer-led innovation and sustained value creation.
Co-op Bank said it remains focused on delivering long-term growth anchored on customer experience, digital transformation and a universal banking model.
The Group currently serves more than 9.8 million account holders and continues to leverage its close ties with Africa’s largest co-operative movement, which has over 15 million members.