Co-operative Bank of Kenya reported a 19.6 per cent growth in profit before tax to Sh35.9 billion for the nine months ended September 30, 2026, up from Sh30 billion recorded during a similar period last year.
The lender’s profit after tax increased by 27.2 per cent to Sh27.4 billion from Sh21.6 billion, reflecting improved earnings driven by growth in lending, increased customer deposits and stronger contributions from its subsidiaries.
The bank’s total assets expanded by 11.3 per cent to Sh907.4 billion, compared to Sh815.3 billion in September 2025, consolidating its position among Kenya’s largest financial institutions.
The strong performance was supported by a 22.2 per cent increase in net loans and advances 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 Group also recorded improved 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 improved to 1.4 per cent from 2.5 per cent, while IFRS loan-loss coverage increased to 82.2 per cent from 70.4 per cent.
Operating expenses grew by a relatively modest 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 rose to 4.3 per cent from 3.7 per cent.
Digital banking and lending expansion
Co-op Bank said approximately 94 per cent of customer transactions were processed through alternative delivery channels, underscoring the growing adoption of digital and agency banking services.
Deposits mobilised through its agency banking network increased by 39 per cent to Sh139.37 billion, compared to Sh85.1 billion in the corresponding period last year.
The bank operates 224 branches across Kenya, South Sudan and through Kingdom Bank, supported by 16,215 Co-op Kwa Jirani agents and 600 ATMs and cash deposit machines.
Its digital lending platform also recorded significant growth, 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 inception.
The bank has also onboarded 273,783 micro, small and medium enterprises (MSMEs) onto tailored banking packages, with 72,198 businesses benefiting 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 customer deposits.
New youth banking strategy
During the period, the lender launched its youth banking proposition, branded Ignite, as part of efforts to expand its presence among young customers.
The initiative targets more than 10 million youth customers in the medium term.
Co-op 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 accessed financial literacy and empowerment programmes.
The bank said its youth proposition provides access to digital account opening, savings, investments, credit and business support services.
AI-driven transformation
The lender is also implementing Project Angaza, an enterprise-wide transformation programme aimed at integrating artificial intelligence, data and automation into its operations.
The initiative is designed to improve customer experience, enhance employee productivity, strengthen operational resilience and accelerate sustainable growth.
Co-op Bank said the programme would focus on responsible and secure AI adoption while improving decision-making and service delivery.
Subsidiaries boost earnings
The bank’s subsidiaries also recorded improved financial performance.
Kingdom Bank posted profit before tax of Sh1.33 billion, representing a 61.8 per cent increase from Sh820.2 million in the corresponding period last year.
Co-op Bancassurance Intermediary recorded profit before tax of Sh1.39 billion, while Co-optrust Investment Services posted Sh966.8 million, representing a 54.8 per cent increase.
Co-op Bank of South Sudan recorded profit before tax of Sh528 million, compared to Sh93.5 million previously.
Kingdom Securities reported profit before tax of Sh104.5 million, up from Sh89.9 million.
Shareholders to receive higher dividend
The 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 performance to 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 co-operative movement network.
Co-op Bank currently serves more than 10 million account holders and is integrated into Africa’s largest co-operative movement, which has approximately 15 million members.
The bank said its strong capital and liquidity positions, with a liquidity ratio of 54.8 per cent and total capital adequacy ratio of 21.3 per cent, would support continued lending and investment.
Its shareholders’ funds increased by 9.2 per cent to Sh179.3 billion during the nine-month period.
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