Co-op Bank Records 19.6% Rise in Profit to KSh35.9 Billion in 9 Months

Co-operative Bank of Kenya has reported a 19.6 per cent increase in profit before tax to KSh35.9 billion for the nine months ended September 30, 2026, on the back of growth in lending, deposits and income from its banking operations.

The bank’s profit before tax rose from KSh30 billion recorded during the same period in 2025, while profit after tax increased by 27.2 per cent to KSh27.4 billion, up from KSh21.6 billion.

The bank’s total assets also expanded by 11.3 per cent to KSh907.4 billion, compared to KSh815.3 billion a year earlier, reflecting growth in its balance sheet.

In its financial results released on November 11, the bank attributed the performance to gains made under its 2025-2029 Good to Great Strategy and the Soaring Eagle Transformation Agenda.

Total customer deposits grew by 14.8 per cent to KSh642.5 billion, while net loans and advances increased by 22.2 per cent to KSh496.9 billion. Government securities rose by 6.1 per cent to KSh271.1 billion.

The bank also reduced borrowed funds by 13.2 per cent to KSh57.7 billion from KSh66.5 billion, while shareholders’ funds increased by 9.2 per cent to KSh179.3 billion.

Net interest income grew by 12.7 per cent to KSh51 billion, supporting an 11.6 per cent rise in operating income to KSh75.2 billion. Operating expenses increased by a slower 5.3 per cent, with the cost-to-income ratio before provisions standing at 46.4 per cent.

The lender reported a return on average equity of 21.3 per cent, up from 19.4 per cent, while return on average assets improved to 4.3 per cent from 3.7 per cent.

It maintained a liquidity ratio of 54.8 per cent and total capital to risk-weighted assets of 21.3 per cent.

Asset quality also improved, with the Group’s non-performing loans ratio declining to 12.9 per cent from 17.1 per cent in September 2025. IFRS coverage rose to 82.2 per cent from 70.4 per cent, while the cost of risk eased to 1.4 per cent from 2.5 per cent.

Co-op CEO, Dr Gideon Muriuki, attributed the improvement to proactive credit management, customer engagement and closer monitoring of its loan portfolio.

Digital channels continued to account for the bulk of the bank’s customer transactions, with approximately 94 per cent processed through alternative delivery channels.

The lender’s service network includes 224 branches across Kenya, South Sudan and Kingdom Bank, 16,215 Co-op Kwa Jirani agents, 600 ATMs and cash deposit machines, as well as a 24-hour contact centre.

Deposits generated through agency banking increased by 39 per cent to KSh139.37 billion, compared to KSh85.1 billion in the corresponding period last year.

The group also reported more than 25,000 Diaspora Banking customers and a workforce of 6,630 employees, representing 804 new jobs since the third quarter of 2025.

Kingdom Bank completed an upgrade of its core banking system to Finacle in October, following similar deployments at Co-op Bank Kenya and Co-op Bank South Sudan. The bank expects the system to support efficiency, innovation and improved customer experience.

Additionally, the group reported that its branch network was complemented by 663 SACCO front offices, strengthening its links with the co-operative movement.

Small businesses remained a key focus, with 273,783 micro, small and medium enterprises onboarded onto tailored banking packages. Another 72,198 businesses received capacity-building and training support.

MSMEs accounted for 16.7 per cent of the bank’s loan book and 23.7 per cent of customer deposits.

Through its E-Credit platform, the bank disbursed KSh66.6 billion during the third quarter. Cumulative disbursements since the platform’s launch exceeded KSh568.5 billion, serving 16.2 million loan customers.

The lender also strengthened its merchant payment services through the CoopTill App, which enables businesses to monitor sales, request payments and access instant Till loans for working capital. Merchants can also receive payments through point-of-sale terminals, Lipa Na M-Pesa and Chapa Pay.

In its youth banking segment, the group launched the Ignite brand, targeting more than 10 million young customers in the medium term.

By September, it had disbursed KSh47.5 billion to more than 585,000 young people to support entrepreneurship, business expansion and income generation. More than 210,000 youth had also accessed financial literacy and empowerment programmes.

The bank reported youth assets under management of more than KSh1.75 billion through digital access to money market funds and bond investment products.

The group has also embarked on Project Angaza, an enterprise-wide programme intended to integrate artificial intelligence, data and automation into its operations.

The initiative is designed to improve customer experience, strengthen staff capabilities, increase productivity and support responsible, secure and well-governed use of AI.

Its subsidiaries also recorded improved performance. Kingdom Bank posted a profit before tax of KSh1.33 billion, up 61.8 per cent from KSh820.2 million.

Co-op Bancassurance Intermediary reported a profit before tax of KSh1.39 billion, while Co-optrust Investment Services recorded KSh966.8 million, a 54.8 per cent increase. Its funds under management stood at KSh508.8 billion.

Co-op Bank of South Sudan posted a profit before tax of KSh528 million, compared to KSh93.5 million, while Kingdom Securities recorded KSh104.5 million, representing a 16.2 per cent rise.

On sustainability, the Co-op Bank Foundation reported that 12,602 students had benefited from its scholarship programme. The group also funded the renovation and equipping of three orthopaedic wards at Kenyatta National Hospital, increasing inpatient capacity by 150 beds.

The bank further reported 4,000 cumulative Co-operative Advisory mandates by the end of the third quarter, alongside progress in climate risk management and alignment with IFRS S1 and S2 and the Kenya Green Finance Taxonomy.

Its performance was recognised through several industry awards, including Kenya’s Best Retail Bank and Best Digital Bank at the Euromoney Awards for Excellence 2026. Global Finance named it Best Bank in Kenya, while the African Banker Awards recognised it as SME Bank of the Year.

It also received the Best Private Bank for Growth Strategy award in Kenya, was named Digital Banking Inclusion Leader in East Africa and Best Commercial Bank of the Year in Kenya, and was ranked among Africa’s Fastest Growing Companies 2026 by Statista.

The board approved an interim dividend of KSh1.50 per share, representing a 50 per cent increase from the KSh1 paid last year. Shareholders listed in the company’s register at the close of business on November 25, 2026, will qualify for payment scheduled for December 4.

Group Managing Director and Chief Executive Officer Gideon Muriuki said the group’s performance was supported by a customer base of more than 10 million account holders, an asset base exceeding KSh907 billion and its links to Africa’s largest co-operative movement, which has about 15 million members.

The group has five subsidiaries and also holds a 24.8 per cent stake in CIC Insurance Group and a 25 per cent stake in Co-op Bank Fleet Africa Leasing.

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