Co-op Bank profit rises 19.6% to Sh35.9 billion in nine months

Co-operative Bank of Kenya has reported a strong financial performance for the first nine months of 2026, with profit before tax rising to Sh35.9 billion from Sh30 billion recorded during a similar period in 2025.

The bank’s profit after tax also increased by 27.2% to Sh27.4 billion, compared to Sh21.6 billion a year earlier.

Its total assets grew by 11.3% to KSh907.4 billion, reflecting continued expansion in its banking operations.

The results cover the nine months ended September 30, 2026, rather than the third quarter alone.

Lending and deposits drive growth

The bank’s balance sheet expansion was supported by increased customer deposits and lending.

Customer deposits grew by 14.8% to KSh642.5 billion, while net loans and advances increased by 22.2% to Sh496.9 billion.

Net interest income, which represents the difference between interest earned on loans and investments and interest paid on deposits and borrowings, increased by 12.7% to Sh51 billion.

Operating income rose by 11.6% to KSh75.2 billion.

Meanwhile, operating expenses increased by a slower 5.3%, with the cost-to-income ratio before provisions standing at 46.4%.

The bank also reported improvements in asset quality.

Its non-performing loan (NPL) ratio declined to 12.9% from 17.1% in September 2025.

This was accompanied by improved loan-loss coverage of 82.2%, compared to 70.4% previously.

The cost of risk also fell to 1.4% from 2.5%.

94% of transactions happen outside branches

Digital banking and agency services continued to play a major role in the bank’s operations, with approximately 94% of customer transactions processed through alternative delivery channels.

Its distribution network includes 16,215 Co-op Kwa Jirani agents and 600 ATMs and cash deposit machines, alongside mobile banking, internet banking, USSD services and a 24-hour contact centre.

Deposits generated through agency banking increased by 39% to Sh139.37 billion, up from Sh85.1 billion in the corresponding period of 2025.

The group also had 224 branches across Kenya, South Sudan and Kingdom Bank, supported by 663 SACCO front offices. Its diaspora banking customer base exceeded 25,000.

Staff numbers rose to 6,630, representing 804 additional jobs compared to September 2025.

Digital loans and MSME support

The bank’s digital lending business also recorded significant activity.

E-Credit disbursements reached KSh66.6 billion in the third quarter of 2026, while cumulative disbursements since inception exceeded KSh568.5 billion.

The platform had served 16.2 million cumulative loan customers, reflecting the scale of the bank’s digital credit business.

Small businesses also remained an important part of its lending strategy.

Co-op Bank had onboarded 273,783 micro, small and medium enterprises (MSMEs), with 72,198 businesses receiving capacity-building and training support.

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

The bank has also expanded its merchant services through the CoopTill App, which allows businesses to monitor sales, request payments and access instant Till loans for working capital.

Co-op Bank increases focus on young customers

Youth banking was another area of focus during the reporting period.

The bank introduced Ignite, a youth-focused proposition supported by a dedicated Youth Financial Services Division.

Its ambition is to serve more than 10 million young customers over the medium term.

By September 2026, the bank had disbursed Sh47.5 billion to more than 585,000 young people to support entrepreneurship, business expansion and income generation.

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

Through the Co-op Bank App, young customers can access digital savings and investment products, including money market funds and bonds.

Youth assets under management in these digital investment propositions exceeded Sh1.75 billion.

The nine-month results reflect growth across the bank’s lending, digital banking, business and youth-focused operations.

Co-op Bank’s next phase of expansion is anchored on its 2025 – 2029 Good to Great Strategy and Project Angaza, an enterprise-wide transformation programme focused on integrating artificial intelligence, data and automation into its operations.