Co-operative Bank of Kenya has posted its highest-ever quarterly profit after earnings rose sharply in the first three months of 2026, helped by growth in loans, customer deposits and digital banking transactions.

The lender announced a profit before tax of Ksh11.37 billion for the quarter ended March 31, 2026, up from Ksh9.63 billion recorded during the same period last year.

The result marked an 18.1 per cent increase and became the strongest quarterly performance in the bank’s history.

Profit after tax also grew by 21.3 per cent to Ksh8.41 billion from Ksh6.93 billion in the first quarter of 2025.

The bank linked the growth to gains made under its 2025-2029 “Good to Great” strategy and the “Soaring Eagle” transformation agenda.

“This is the best-ever performance to be recorded in a single quarter,” Group Managing Director and CEO Gideon Muriuki said in a statement released on May 13.

Muriuki said the results showed strong growth across the business despite pressure in the wider economy.

“This strong performance underscores the significant gains made under the 2025-2029 ‘Good to Great’ Strategy and the ‘Soaring Eagle’ Transformation Agenda,” he added.

The bank’s total assets increased by 14.3 per cent to Ksh884.6 billion, while customer deposits rose by 16.6 per cent to Ksh612.2 billion.

Net loans and advances grew by 13.6 per cent to Ksh436.8 billion, showing continued demand for credit from households and businesses.

Co-op Bank also increased its investment in government securities to Ksh272.9 billion from Ksh242.1 billion last year.

Operating income climbed by 13.6 per cent to Ksh24.05 billion, driven by higher interest income and growth in non-funded income.

At the same time, operating expenses rose by 8.4 per cent. However, the bank kept its cost-to-income ratio before provisions at 44.3 per cent.

The lender also reported improvements in asset quality. Its non-performing loan ratio fell to 14.5 per cent from 17 per cent recorded in the first quarter of 2025.

The bank maintained a liquidity ratio of 63.4 per cent and total capital to risk weighted assets ratio of 23.2 per cent.

Digital banking remained one of the bank’s strongest growth areas during the quarter.

Co-op Bank said more than 90 per cent of customer transactions now happen through alternative channels such as mobile banking, internet banking and USSD services.

The lender continued to expand its physical and digital network across the country. It now operates more than 16,200 Co-op Kwa Jirani agents, 615 ATMs and cash deposit machines, and 222 branches across Kenya and South Sudan.

Digital growth drives scale

The group also reported a growing customer base of more than 9.8 million account holders and over 22,000 diaspora banking customers.

Its workforce increased to 6,271 employees after the bank created 383 jobs during the quarter.

The lender also continued to expand digital lending through its E-Credit platform.

The bank disbursed Ksh19.11 billion in digital loans during the quarter. Since the platform launched, total disbursements have crossed Ksh520 billion.

Co-op Bank said it had onboarded more than 264,000 micro, small and medium-sized enterprises onto specialised MSME banking packages.

Another 71,043 MSMEs received business training and support programmes during the quarter.

The lender also increased its focus on youth banking after setting up a dedicated Youth Financial Services division.

According to the bank, more than 100,000 young people accessed financial literacy programmes during the first quarter.

The group’s subsidiaries also recorded strong growth during the period.

Kingdom Bank nearly doubled its profit before tax to Ksh446.2 million from Ksh224.7 million last year.

Co-op Bancassurance Intermediary posted a 39.5 per cent increase in profit before tax to Ksh560.4 million, while Co-optrust Investment Services more than doubled its earnings to Ksh332.5 million.

Co-op Bank of South Sudan returned to profitability after posting Ksh99 million in profit before tax compared to a Ksh47 million loss in the same period last year.

The lender recently earned further recognition after the Financial Times and Statista named it among Africa’s fastest-growing companies for 2026.

Global Finance also named Co-op Bank the Best Bank in Kenya for 2026.