Co-op Bank opens 2026 with $65 million under Gideon Muriuki

Co-operative Bank Group (Co-op Bank), led by Kenyan banking magnate Gideon Muriuki, has kicked off 2026 on a record note, building on the previous year’s success and aligning with its strategic focus on sustainable growth, resilience, and agility while riding on its ‘Soaring Eagle’ transformation agenda. 

For the first three months of its 2026 fiscal year, the banking group booked a net profit of $65 million, driven by robust digital lending and net interest income. 

Digital growth and balance sheet expansion lift earnings
According to its latest financial release, the Nairobi-listed lender recorded its best-ever performance in a single quarter, with a 21.88% year-on-year increase in net profit, climbing to Ksh8.41 billion ($65.06 million) from Ksh6.93 billion ($53.3 million) the previous year. 

The double-digit growth was powered by net interest income, which grew 12.2% to Ksh15.98 billion ($123.6 million) from Ksh14.2 billion ($109.91 million), alongside a 13.6% rise in operating income to Ksh24.05 billion ($186 million).

Deposits strengthen liquidity and income position

The bank’s customer deposits grew 16.6% to Ksh612.2 billion ($4.74 billion). Net loans and advances increased 13.6% to Ksh436.8 billion ($3.38 billion), complemented by a 12.7% rise in government securities to Ksh272.9 billion ($2.11 billion), reinforcing liquidity and income diversification.

Operational efficiency improved, with the cost-to-income ratio easing to 44.3%, while return on equity stood at 20.4%. Asset quality also strengthened, as the non-performing loan ratio declined to 14.5% from 17% a year earlier.

Subsidiaries deliver strong earnings growth

Co-op Bank continued to deepen its digital footprint, processing over 90% of customer transactions through alternative channels. Its digital lending platform disbursed Ksh19.11 billion ($147.79 million) during the quarter, bringing cumulative disbursements to more than Ksh520 billion ($4.02 billion).

Subsidiaries delivered robust growth, with Kingdom Bank nearly doubling profit, while Co-optrust Investment Services more than doubled earnings to Ksh335.2 million ($2.59 million). Bancassurance and securities units also posted strong gains, and the South Sudan unit returned to profitability.

Commenting on the results, Muriuki highlighted the bank’s resilience and customer-centric model, noting that its cooperative-linked ecosystem, serving over 9.8 million account holders, continues to provide a competitive edge in driving sustainable growth.

Asset growth and subsidiary contributions under Muriuki

Co-op Bank, a major player in East Africa’s financial sector, boasts several subsidiaries, including Kingdom Securities, Co-op Trust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited, and the Co-operative Bank of South Sudan.  

Muriuki, who holds a 2% stake in the bank, equivalent to 117.53 million shares, has seen the value of his holding rise to Ksh3.73 billion ($28.82 million), cementing his place as one of Kenya’s wealthiest investors. Co-operative Bank’s total assets have also expanded by 14.3% from KSh774.1 billion ($5.99 billion) to Ksh884.6 billion ($6.84 billion), reinforcing Co-op Bank’s position as one of Kenya’s top financial institutions. It remains committed to strengthening its digital capabilities and expanding its regional footprint as part of its long-term growth strategy.

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