Co-operative Bank of Kenya has reported a 27.2 per cent increase in profit after tax to Sh27.4 billion for the nine months ended September 30, 2026, up from Sh21.6 billion recorded during a similar period last year.
The lender’s profit before tax also rose by 19.6 per cent to Sh35.9 billion, compared to Sh30 billion in September 2025, supported by increased lending, growth in customer deposits and improved contributions from its subsidiaries.
The bank’s total assets expanded by 11.3 per cent to Sh907.4 billion from Sh815.3 billion, strengthening its position among Kenya’s largest financial institutions.
Net loans and advances increased by 22.2 per cent to Sh496.9 billion, while customer deposits grew by 14.8 per cent to Sh642.5 billion.
Net interest income rose by 12.7 per cent to Sh51 billion, while total operating income increased by 11.6 per cent to Sh75.2 billion.
The lender also recorded improvements in asset quality, with its non-performing loans (NPL) ratio declining to 12.9 per cent from 17.1 per cent a year earlier.
Its cost of risk dropped to 1.4 per cent from 2.5 per cent, while IFRS loan-loss coverage improved to 82.2 per cent from 70.4 per cent.
Operating expenses increased by 5.3 per cent, with the cost-to-income ratio before provisions standing at 46.4 per cent.
The bank’s return on average equity improved to 21.3 per cent from 19.4 per cent, while return on average assets increased to 4.3 per cent from 3.7 per cent.
Co-op Bank attributed part of its performance to increased adoption of digital and alternative banking channels, which accounted for approximately 94 per cent of all customer transactions.
Deposits mobilised through its agency banking network increased by 39 per cent to Sh139.37 billion, compared to Sh85.1 billion recorded during the corresponding period last year.
The bank operates 224 branches across Kenya and South Sudan, including those under Kingdom Bank. Its distribution network is supported by 16,215 Co-op Kwa Jirani agents and 600 ATMs and cash deposit machines.
Its digital lending platform also recorded significant activity, disbursing Sh66.6 billion in the third quarter of 2026.
Cumulative disbursements through the E-Credit platform have surpassed Sh568.5 billion, serving approximately 16.2 million loan customers since its introduction.
The lender has continued to expand its services to micro, small and medium enterprises (MSMEs), with 273,783 businesses onboarded onto tailored banking packages.
Of these, 72,198 businesses have benefited from capacity-building and training programmes.
MSMEs account for 16.7 per cent of the bank’s loan book and 23.7 per cent of its customer deposits.
During the period, Co-op Bank also launched Ignite, a youth banking proposition aimed at expanding its reach among young customers.
The initiative targets more than 10 million youth customers in the medium term by providing access to digital account opening, savings, investments, credit and business support services.
The bank disclosed that it had disbursed Sh47.5 billion to young customers, supporting more than 585,000 beneficiaries in entrepreneurship, business expansion and income generation.
More than 210,000 young people have also participated in financial literacy and empowerment programmes.
The lender is also implementing Project Angaza, an enterprise-wide transformation programme designed to integrate artificial intelligence (AI), data analytics and automation into its operations.
The initiative seeks to improve customer experience, increase employee productivity, strengthen operational resilience and support sustainable growth.
The bank said the programme would prioritise responsible and secure AI adoption while improving decision-making and service delivery.
The transformation comes as financial institutions increasingly explore emerging technologies to improve efficiency, manage risks and provide personalised services.
Co-op Bank’s subsidiaries also posted improved financial results during the nine-month period.
Kingdom Bank recorded profit before tax of Sh1.33 billion, representing a 61.8 per cent increase from Sh820.2 million reported during a similar period last year.
Co-op Bancassurance Intermediary posted profit before tax of Sh1.39 billion, while Co-optrust Investment Services recorded Sh966.8 million, representing a 54.8 per cent increase.
Co-op Bank of South Sudan reported profit before tax of Sh528 million, compared to Sh93.5 million previously.
Kingdom Securities also improved its performance, recording profit before tax of Sh104.5 million, up from Sh89.9 million.
Co-op Bank Declares Sh1.50 Interim Dividend
Following the improved financial performance, the bank’s board approved an interim dividend of Sh1.50 per share, representing a 50 per cent increase from the Sh1 paid per share in the previous year.
Shareholders registered by close of business on November 25, 2026, will qualify for the dividend, which is scheduled for payment on December 4, 2026.
The lender attributed its growth to the implementation of its 2025–2029 Good to Great Strategy and the Soaring Eagle Transformation Agenda.
Group Managing Director and Chief Executive Officer Gideon Muriuki said the bank remained focused on expanding its customer base, strengthening its balance sheet and leveraging its extensive network within the cooperative movement.
Co-op Bank currently serves more than 10 million account holders and is integrated into Africa’s largest cooperative movement, which has approximately 15 million members.
The bank’s shareholders’ funds increased by 9.2 per cent to Sh179.3 billion during the nine-month period.
Its liquidity ratio stood at 54.8 per cent, while its total capital adequacy ratio was 21.3 per cent, providing financial capacity to support lending and further investment.
Author: Andrew Walyaula
Andrew Walyaula is a seasoned multimedia journalist. Email: [email protected]
