Co-op Bank Reports 19.6% Growth in Profit to KSh35.9 Billion in Q3 2026

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, compared to KSh30 billion recorded during a similar period in 2025.

The bank’s Profit After Tax also increased by 27.2 per cent to KSh27.4 billion, up from KSh21.6 billion in the third quarter of 2025, reflecting improved financial performance across its operations.

The Group’s total assets grew by 11.3 per cent to KSh907.4 billion from KSh815.3 billion recorded in September 2025, while total deposits increased by 14.8 per cent to KSh642.5 billion.

Net loans and advances rose by 22.2 per cent to KSh496.9 billion, reflecting increased lending activity during the period.

The bank attributed its performance to gains made under its 2025–2029 Good to Great Strategy and the Soaring Eagle Transformation Agenda, which focus on business growth, digital innovation, operational efficiency and improved customer experience.

Co-op Bank Strengthens Balance Sheet as Deposits and Lending Grow

The bank recorded an improvement in several key financial indicators, with Return on Average Equity rising to 21.3 per cent from 19.4 per cent in the corresponding period last year.

Return on Average Assets also improved to 4.3 per cent from 3.7 per cent, while net interest income increased by 12.7 per cent to KSh51 billion, supported by growth in loans and advances.

Operating income grew by 11.6 per cent to KSh75.2 billion, while operating expenses increased by a slower rate of 5.3 per cent.

The Group’s cost-to-income ratio before provisions stood at 46.4 per cent, reflecting what the bank described as continued cost-containment measures.

Shareholders’ funds increased by 9.2 per cent to KSh179.3 billion, while borrowed funds declined by 13.2 per cent to KSh57.7 billion.

The bank maintained a liquidity ratio of 54.8 per cent, with total capital to risk-weighted assets standing at 21.3 per cent.

It also reported an improvement in asset quality, with the Group’s non-performing loans (NPL) ratio declining to 12.9 per cent from 17.1 per cent in Q3 2025.

IFRS coverage improved to 82.2 per cent from 70.4 per cent, while the cost of risk dropped to 1.4 per cent from 2.5 per cent.

94% of Transactions Processed Through Digital Channels

Co-op Bank continued to expand its digital banking operations, with approximately 94 per cent of customer transactions processed through alternative delivery channels.

The bank’s digital platforms are supported by 16,215 Co-op Kwa Jirani agents, 600 ATMs and cash deposit machines, alongside a 24-hour contact centre.

Agency banking deposits increased by 39 per cent to KSh139.37 billion, compared to KSh85.1 billion recorded in Q3 2025.

The Group also maintained a network of 224 branches across Kenya, South Sudan and Kingdom Bank, complemented by 663 SACCO front offices.

During the period, Kingdom Bank completed the upgrade of its core banking system to Finacle in October 2026, following successful deployment at Co-op Bank Kenya and Co-op Bank South Sudan.

The bank also reported a growing Diaspora Banking customer base of more than 25,000, while its workforce increased to 6,630 employees.

The expansion represented 804 new jobs created since Q3 2025.

Co-op Bank Disburses KSh66.6 Billion Through E-Credit

The Group continued to expand its digital lending and financial inclusion programmes, with E-Credit disbursements reaching KSh66.6 billion in Q3 2026.

Since its inception, the platform has disbursed more than KSh568.5 billion, serving a cumulative 16.2 million loan customers.

The bank also reported onboarding 273,783 micro, small and medium enterprises (MSMEs) onto tailored banking packages.

A further 72,198 MSMEs benefited from capacity-building and business training initiatives.

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

The bank also strengthened its merchant payment solutions through the CoopTill App, which enables businesses to monitor sales, request payments and access instant Till loans for working capital.

Co-op Bank Launches Ignite Youth Banking Proposition

The bank accelerated its youth banking strategy through the launch of its Ignite brand, targeting more than 10 million youth customers in the medium term.

By Q3 2026, the bank had disbursed KSh47.5 billion to youth customers, supporting more than 585,000 young people in entrepreneurship, business expansion and income generation.

More than 210,000 young people also accessed financial literacy and empowerment programmes.

Through its Co-op Bank App, the lender expanded digital access to savings, investments, credit and business support services.

The youth banking proposition had accumulated more than KSh1.75 billion in assets under management through Money Market Fund and bond investment products.

Bank Embarks on AI-Powered Transformation Project

Co-op Bank also announced progress in Project Angaza, an enterprise-wide transformation programme aimed at integrating artificial intelligence, data and automation into its operations.

The initiative seeks to improve customer experience, strengthen operational efficiency, accelerate innovation and enhance decision-making.

The bank said the project is anchored on four strategic outcomes covering customer experience, employee capabilities, business performance and responsible use of artificial intelligence.

Subsidiaries Record Improved Performance

The Group’s subsidiaries also contributed to the overall financial performance.

Kingdom Bank recorded a Profit Before Tax of KSh1.33 billion, representing a 61.8 per cent increase from KSh820.2 million in the previous period.

Co-op Bancassurance Intermediary posted a Profit Before Tax of KSh1.39 billion, while Co-optrust Investment Services recorded KSh966.8 million, representing a 54.8 per cent increase from KSh624.7 million.

Co-op Bank of South Sudan posted a Profit Before Tax of KSh528 million, compared to KSh93.5 million in Q3 2025.

Kingdom Securities recorded a Profit Before Tax of KSh104.5 million, up from KSh89.9 million, representing a 16.2 per cent increase.

Co-op Bank Approves KSh1.50 Interim Dividend

Following the strong financial performance, the bank’s board approved an interim dividend of KSh1.50 per share, representing a 50 per cent increase from the KSh1 paid per share in the previous year.

The dividend will be payable to shareholders on the company’s register as of November 25, 2026, with payment scheduled for December 4, 2026.

Group Managing Director and Chief Executive Officer Dr Gideon Muriuki said the bank remained committed to advancing its strategic priorities through resilience, growth and customer-focused banking.

The Group currently serves more than 10 million account holders and is anchored in Africa’s largest co-operative movement, which has approximately 15 million members.