Co-operative Bank Group has reported a 27.2% increase in net profit to KSh27.43 billion for the nine months ended September 2026, marking its highest earnings over the period.
The growth was supported by increased interest income, expansion in lending activities and a substantial decline in provisions set aside for potential loan defaults.
The Nairobi Securities Exchange (NSE)-listed lender also announced a 50% increase in its interim dividend to KSh1.50 per share, marking its second interim dividend payout since the bank was listed in 2008.
The bank will distribute approximately KSh8.80 billion to shareholders, with payments scheduled for on or immediately after December 4. The dividend will be paid to investors whose names appear on the register by November 25.
Co-operative Bank’s profit before tax rose by 19.6% to KSh35.91 billion, while operating income increased by 11.6% to KSh75.17 billion.
Net interest income grew by 12.7% to KSh51.03 billion, following a 7% rise in interest income and a 4.4% reduction in funding costs. Meanwhile, non-interest income climbed 9.2% to KSh24.14 billion.
The lender also recorded a 34.2% decline in loan-loss provisions, which dropped to KSh4.84 billion from KSh7.36 billion recorded during a similar period last year.
Gross non-performing loans fell by 9.2% to KSh71.67 billion, while the non-performing loan ratio improved to 12.9%, compared to 17.1% a year earlier. Loan-loss coverage also strengthened from 70.4% to 82.2%.
On lending, the bank’s net loans and advances expanded by 22.2% to KSh496.89 billion, outpacing the 15.4% growth in customer deposits, which reached KSh633.01 billion.
Its total assets increased by 11.3% to KSh907.44 billion, while shareholders’ funds rose to KSh179.30 billion.
Despite the improved earnings, operating expenses increased by 5.3% to KSh39.72 billion. Staff costs accounted for part of the increase, rising 12.7% to KSh16.96 billion.
The cost-to-income ratio, excluding loan-loss provisions, edged upwards to 46.4% from approximately 45.1%. However, return on average equity improved to 21.3%, up from 19.4%.
The latest results represent the Group’s strongest nine-month profit growth since 2022. Its net profit has also expanded more than fifteenfold from KSh1.81 billion recorded in September 2008, while operating income has grown from KSh7.21 billion to KSh75.17 billion over the same period.
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Managing Director Gideon Muriuki attributed the performance to the progress made under the bank’s 2025–2029 Good to Great Strategy and its Soaring Eagle Transformation Agenda.
On digital banking, Co-operative Bank disclosed that it had disbursed KSh66.60 billion through its E-Credit platform, with approximately 94% of customer transactions taking place through alternative banking channels.
The Group currently operates 224 branches and has a network of 16,215 agents.
Its subsidiary, Kingdom Bank, recorded a 65.5% increase in net profit to KSh872.96 million, while Co-optrust Investment Services reported KSh508.80 billion in assets under management.
The Group is also advancing Project Angaza, an artificial intelligence initiative aimed at strengthening its operations. Separately, Kingdom Bank completed the migration of its core banking system to Finacle in October.
