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Co-operative Bank of Kenya (Co-op Bank) has reported a record 21.3 per cent jump in first-quarter net profit, as a surge in earnings from its non-banking subsidiaries helped the lender defy a broader economic slowdown.
In an announcement made on Wednesday, the net profit for the three months that ended on March 31 rose to Sh8.41 billion from Sh6.93 billion a year earlier, marking the bank’s strongest-ever quarterly performance.
The results offer a rare bright spot in the country’s corporate sector, where many firms have struggled with higher funding costs and compressed margins.
This came as Co-op Bank was named as one of Africa’s Fastest Growing Companies in 2026 by Financial Times (FT) of London.
FT said the ranking, compiled with the help of research company Statista, measures compound growth rate in revenues between 2021 and 2024.
Co-op Bank’s growth in the quarter was underpinned by a 13.6 per cent rise in total operating income to Sh24.05 billion, supported by expanded lending and a significant contribution from its specialized units.
Net interest income rose by 12.2 per cent to hit Sh15.98 billion, on the back of a 13.6 per cent jump in loans and advances to Sh436.8 billion and a 12.7 per cent increase in government securities to Sh272.9 billion.
“This is the best-ever performance to be recorded in a single quarter,” said Co-op Bank Group Managing Director and CEO Gideon Muriuki in a statement.
He attributed the gains to the lender’s “soaring eagle” transformation agenda, which has focused on operational efficiency and diversifying revenue streams.
“This strong performance underscores the significant gains made under the 2025-2029 “good to great” strategy and the “soaring eagle” transformation agenda.
Subsidiaries were a key engine of growth for Co-op Bank during the quarter.
Kingdom Bank, the group’s retail-focused unit, nearly doubled profit before tax to Sh446.2 million, up by 98.6 per cent while fund management arm Co-optrust Investment Services saw profit before tax more than double to Sh335.2 million, a 107.6 per cent surge.
Co-op Bancassurance Intermediary profit before tax grew by 39.5 per cent to Sh560.4 million, and the group’s South Sudan operation swung to a Sh99 million pretax profit from a Sh47 million loss a year earlier.
The group’s balance sheet expanded, with total assets growing 14.3 per cent to Sh884.6 billion.
Customer deposits climbed 16.6 per cent to Sh612.2 billion, while shareholders’ funds rose 11.5 per cent to Sh173.8 billion.
Bucking a national trend of corporate retrenchment, Co-op Bank increased its staff numbers to 6,271 from 5,888 a year earlier. The addition of 383 net new jobs during the quarter stands in sharp contrast to the cost-cutting measures and layoffs seen across other sectors of the Kenyan economy.
Efficiency gains were evident as operating expenses grew at a slower pace than income, at 8.4 per cent, enhancing the bank’s cost-to-income ratio to 44.3 per cent.
Meanwhile, asset quality improved significantly, with the non-performing loan ratio falling to 14.5 per cent from 17 per cent in the first quarter of 2025.
The bank continued its digital push, with over 90 per cent of customer transactions handled via non-branch channels. Its e-credit platform disbursed Sh19.11 billion during the quarter, bringing total disbursements since its launch to more than Sh520 billion.
Looking ahead, the lender has formalised a dedicated Youth Financial Services division aimed at capturing 10 million young customers. It also continues to pivot toward small businesses, with micro, small, and medium enterprises (MSMEs) now accounting for 16.8 per cent of its total loan book.
Attention now turns to how other tier-one lenders including KCB Group, Equity Group Holdings, NCBA Group, Absa Bank Kenya among others will perform when they release first-quarter results over the coming days.
Their reports will signal whether Co-op’s strength is an outlier or part of a broader banking sector resilience.
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Co-operative Bank of Kenya (Co-op Bank) has reported a record 21.3 per cent jump in first-quarter net profit, as a surge in earnings from its non-banking subsidiaries helped the lender defy a broader economic slowdown.
In an announcement made on Wednesday, the net profit for the three months that ended on March 31 rose to Sh8.41 billion from Sh6.93 billion a year earlier, marking the bank’s strongest-ever quarterly performance.
The results offer a rare bright spot in the country’s corporate sector, where many firms have struggled with higher funding costs and compressed margins.
This came as Co-op Bank was named as one of Africa’s Fastest Growing Companies in 2026 by Financial Times (FT) of London.
FT said the ranking, compiled with the help of research company Statista, measures compound growth rate in revenues between 2021 and 2024.
Co-op Bank’s growth in the quarter was underpinned by a 13.6 per cent rise in total operating income to Sh24.05 billion, supported by expanded lending and a significant contribution from its specialized units.
Net interest income rose by 12.2 per cent to hit Sh15.98 billion, on the back of a
13.6 per cent jump in loans
and advances to Sh436.8 billion and a 12.7 per cent increase in government securities to Sh272.9 billion.
“This is the best-ever performance to be recorded in a single quarter,” said Co-op Bank Group Managing Director and CEO Gideon Muriuki in a statement.
He attributed the gains to the lender’s “soaring eagle” transformation agenda, which has focused on operational efficiency and diversifying revenue streams.
“This strong performance underscores the significant gains made under the 2025-2029 “good to great” strategy and the “soaring eagle” transformation agenda.
Subsidiaries were a key engine of growth for Co-op Bank during the quarter.
Kingdom Bank, the group’s retail-focused unit, nearly doubled profit before tax to Sh446.2 million, up by 98.6 per cent while fund management arm Co-optrust Investment Services saw profit before tax more than double to Sh335.2 million, a 107.6 per cent surge.
Co-op Bancassurance Intermediary profit before tax grew by 39.5 per cent to Sh560.4 million, and the group’s South Sudan operation swung to a Sh99 million pretax profit from a Sh47 million loss a year earlier.
The group’s balance sheet expanded, with total assets growing 14.3 per cent to Sh884.6 billion.
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Customer deposits climbed 16.6 per cent to Sh612.2 billion, while shareholders’ funds rose 11.5 per cent to Sh173.8 billion.
Bucking a national trend of corporate retrenchment, Co-op Bank increased its staff numbers to 6,271 from 5,888 a year earlier. The addition of 383 net new jobs during the quarter stands in sharp contrast to the cost-cutting measures and layoffs seen across other sectors of the Kenyan economy.
Efficiency gains were evident as operating expenses grew at a slower pace than income, at 8.4 per cent, enhancing the bank’s cost-to-income ratio to 44.3 per cent.
Meanwhile, asset quality improved significantly, with the non-performing loan ratio falling to 14.5 per cent from 17 per cent in the first quarter of 2025.
The bank
continued its digital push
, with over 90 per cent of customer transactions handled via non-branch channels. Its e-credit platform disbursed Sh19.11 billion during the quarter, bringing total disbursements since its launch to more than Sh520 billion.
Looking ahead, the lender has formalised a dedicated Youth Financial Services division aimed at capturing 10 million young customers. It also continues to pivot toward small businesses, with micro, small, and medium enterprises (MSMEs) now accounting for 16.8 per cent of its total loan book.
Attention now turns to how other tier-one lenders including KCB Group, Equity Group Holdings, NCBA Group, Absa Bank Kenya among others will perform when they release first-quarter results over the coming days.
Their reports will signal whether Co-op’s strength is an outlier or part of a broader banking sector resilience.
By Brian Ngugi