Co-operative Bank of Kenya has posted a 21.2 percent growth in net profit to Sh8.4 billion in the first quarter of trading ended March 2026 on increased interest and non-interest income.
The group's net earnings grew from Sh6.93 billion posted in a similar quarter last year. This was on the back of net interest income growing by 12.2 percent to Sh15.98 billion and non-interest income rising 16.3 percent to hit Sh8.07 billion.
“This is the best-ever performance to be recorded in a single quarter. This strong performance underscores the significant gains made under the 2025-2029 Good to Great Strategy and the Soaring Eagle Transformation Agenda,” said Co-op Bank's managing director Gideon Muriuki.
The review period saw the company's operating expenses rise by 8.4 percent to Sh12.74 billion from Sh11.74 billion, with the spending on staff costs rising to Sh5.47 billion from Sh4.92 billion.
The rise in Co-op Bank's staff costs was on the back of hiring additional employees as the lender expanded its branch network. The bank said its headcount grew by 383 over the review period to 6,271 amid an increase in physical branches by 10 to 222.
Co-op Bank's provision for loan defaults eased to Sh2.08 billion from Sh2.11 billion, coming in the period the stock of gross non-performing loans (NPLs) fell to Sh71.37 billion from Sh74.07 billion. NPL ratio improved to 14.5 percent at the end of March this year from 17 percent in a similar period last year.
Profit contribution from other business units, excluding the banking arm, rose to 14.4 percent during the review period from 10.4 percent a year earlier, highlighting growing diversification of revenue streams.
Kingdom Bank, which is 90 percent owned by Co-op Bank group, saw its net profit more than double to Sh290.08 million from Sh143.97 million on the back of continued expansion in its retail and business banking segments.
Co-op Consultancy & Bancassurance Intermediary Limited posted a pre-tax profit of Sh560.4 million, marking a 39.5 percent growth from Sh402.1 million in the previous period
The lender said its fund management business, called Co-optrust Investment Services, more than doubled its gross profit to Sh335.2 million from Sh161.5 million as funds under management hit Sh489 billion from 383.9 billion.
Co-op Bank of South Sudan, in which the listed firm holds a 51 percent stake, emerged from a pre-tax loss of Sh47 million to post a gross profit of Sh99 million on the back of improved operating environment.
Over the same period, Kingdom Securities delivered a before tax profit of Sh57.7 million, marking a 38 percent rise from Sh41.8 million in the first quarter of last year. The lender attributed the growth to increased activity in the capital markets.
The review period saw Co-op Bank’s asset base grow 14.3 percent to Sh884.57 billion while customer deposits increased by 16.5 percent to Sh612.22 billion.
The Nairobi Securities Exchange-listed lender was listed among the fastest growing firms in Africa in the Fastest-Growing Companies 2026 ranking by research company Statista and media firm Financial Times.
