Co-operative Bank of Kenya has reported a group net profit of KSh 8.41 Bn for the quarter ended 31 March 2026, up 21.3% from KSh 6.93 Bn, the strongest single-quarter performance in the lender's history.
- •The result was driven by a 12.2% increase in net interest income to KSh 15.98 Bn as interest expenses fell 8.3% to KSh 7.30 Bn, the second consecutive quarter of declining funding costs following the CBK easing cycle.
- •Since Q1 2008, total assets have grown 13-fold from KSh 68.30 Bn, with the KSh 87 Bn added in customer deposits in the past year alone exceeding the bank's entire deposit base in Q1 2010.
- •Kingdom Bank, the group's subsidiary, doubled its profit before tax to KSh 414.41 Mn from KSh 205.69 Mn on a 56.1% surge in net loans to KSh 24.80 Bn.
Non-interest income rose 16.3% to KSh 8.07 Bn, led by a 18.4% jump in fees and commissions on loans to KSh 3.28 Bn and a 10.7% increase in other fees to KSh 3.38 Bn. Total operating income crossed KSh 24 Bn for the first time in a single quarter, reaching KSh 24.05 Bn, up 13.6%.
Operating expenses grew a more modest 8.4% to KSh 12.74 Bn, narrowing the cost-to-income ratio to 53.0% from 55.5%, the best Q1 reading since 2015. Loan loss provisions held flat at KSh 2.08 Bn, down 1.5%, as asset quality improved: gross non-performing loans fell 3.6% to KSh 71.37 Bn, the first year-on-year Q1 decline since 2009. The NPL ratio improved to 14.5% from 17.0%.
On the balance sheet, total assets grew 14.3% to KSh 884.57 Bn. Customer deposits crossed the KSh 600 Bn threshold for the first time, reaching KSh 612.22 Bn, up 16.6%. Net loans expanded 13.6% to KSh 436.76 Bn. Government securities grew 12.7% to KSh 272.88 Bn. Shareholders' funds rose 11.4% to KSh 173.75 Bn, with total capital adequacy at 23.2%.
Co-op Bank South Sudan swung to a KSh 99 Mn profit from a KSh 47 Mn loss. Co-optrust Investment Services more than doubled its profit to KSh 335.2 Mn as funds under management reached KSh 489 Bn.
Kingdom Bank | Q1 2026 Metrics Table
| Metric | Q1 2026 | Q1 2025 | YoY Change |
|---|---|---|---|
| Total Interest Income | 1.53 Bn | 1.14 Bn | ▲+34.1% |
| Total Interest Expenses | 679.04 Mn | 617.23 Mn | ▲+10.0% |
| Net Interest Income | 851.33 Mn | 523.83 Mn | ▲+62.5% |
| Non-Interest Income | 243.04 Mn | 183.01 Mn | ▲+32.8% |
| Total Operating Income | 1.09 Bn | 706.84 Mn | ▲+54.8% |
| Loan Loss Provisions | 85.25 Mn | 84.45 Mn | ▲+0.9% |
| Staff Costs | 252.76 Mn | 219.81 Mn | ▲+15.0% |
| Total Operating Expenses | 679.96 Mn | 501.16 Mn | ▲+35.7% |
| Profit Before Tax | 414.41 Mn | 205.69 Mn | ▲+101.5% |
| Profit After Tax | 290.09 Mn | 143.98 Mn | ▲+101.5% |
| Total Assets | 53.07 Bn | 44.91 Bn | ▲+18.2% |
| Net Loans & Advances | 24.80 Bn | 15.88 Bn | ▲+56.1% |
| Customer Deposits | 31.89 Bn | 25.21 Bn | ▲+26.5% |
| Shareholders' Funds | 5.21 Bn | 3.73 Bn | ▲+39.9% |
| Gross NPLs | 3.96 Bn | 3.42 Bn | ▲+15.6% |
| Borrowed Funds | 14.35 Bn | 14.27 Bn | ▲+0.5% |
| Core Capital/RWA | 16.4% | 17.6% | ▼-1.2pp |
| Total Capital/RWA | 24.3% | 17.6% | ▲+6.7pp |
| Cost-to-Income Ratio | 62.2% | 70.9% | ▼-8.7pp |
| Liquidity Ratio | 63.5% | 86.5% | ▼-23.0pp |
Since Q1 2008, net profit has expanded 14.9x from KSh 564 Mn. Customer deposits have risen 11.3x from KSh 53.97 Bn, with the pace accelerating: it took three years to move from KSh 300 Bn to KSh 400 Bn (Q1 2019 to Q1 2022), two years from KSh 400 Bn to KSh 500 Bn, and just one year to breach KSh 600 Bn.
The cost-to-income ratio has improved from 62.6% to 53.0% over 18 years despite a 9.4x increase in absolute expenses. The bank has posted a Q1 profit in every quarter in the series, weathering the 2008 post-election crisis, the 2011-2012 rate shock, and the COVID-19 pandemic without a single quarterly loss.
