Co-operative Bank of Kenya has reported a 28% increase in net profit to KSh18 billion for the six months ended June 2026, marking its strongest half-year performance on record.
The lender’s profit rose from KSh14.1 billion in the same period last year, supported by increased lending, higher interest income and stronger earnings from its subsidiaries.
Profit before tax grew 17.3% to KSh23.1 billion, up from KSh19.7 billion a year earlier.
The bank’s loan book expanded significantly during the period, with net loans and advances rising 18.1% to KSh462.2 billion. The growth helped lift net interest income by 13% to KSh33.2 billion.
Overall operating income increased 12.5% to KSh48.9 billion, driven by stronger interest earnings and sustained growth in non-funded income.
Improved asset quality also supported profitability. The Group’s non-performing loan ratio fell to 13.9% from 17.2% a year earlier, while the cost of risk declined from 2.4% to 1.8%.
The improvement allowed the bank to expand lending to businesses and households while keeping credit costs under control.
Customer deposits increased 11.2% to KSh623.2 billion, providing the bank with additional funding for lending and investments. Government securities rose 7% to KSh271.6 billion.
Co-op Bank’s total assets grew 7.1% to KSh869.5 billion from KSh811.9 billion, while shareholders’ funds increased 9.4% to KSh171 billion.
Operating expenses rose 9.2%, remaining below the rate of income growth. As a result, the bank’s cost-to-income ratio before provisions stood at 46%.
The Group’s subsidiaries also delivered stronger results. Kingdom Bank’s profit before tax rose 77.8% to KSh873 million from KSh491.1 million, while Co-optrust Investment Services recorded a 77.5% increase to KSh640.5 million.
Co-op Bank of South Sudan’s profit before tax climbed to KSh224 million from KSh56.9 million, while Kingdom Securities posted a 23.3% increase to KSh77.9 million.
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Digital and agency banking remained important growth channels, with more than 90% of customer transactions processed through alternative channels.
Agency-generated deposits rose 8.7% to KSh92.5 billion, while digital E-Credit disbursements reached KSh40.4 billion during the first half.
Group Managing Director and CEO Gideon Muriuki attributed the performance to the bank’s 2025-2029 Good to Great Strategy and its Soaring Eagle transformation programme.
Co-op Bank’s return on average equity stood at 22%, while return on average assets improved to 4.3% from 3.7%.
The lender said its strong capital and liquidity position would enable it to maintain lending, investment and expansion momentum during the second half of the year.
