Co-op Bank net profit surges 28% to Ksh.18 billion

Co-operative Bank of Kenya has posted a 28 per cent increase in net profit to Ksh.18 billion for the six months ended June 2026, marking the lender’s strongest half-year performance on record.

The bank’s profit after tax rose from Ksh.14.1 billion in the first half of 2025 to Ksh.18 billion, reflecting a Ksh.3.9 billion increase in earnings. Profit before tax also grew by 17.3 per cent to Ksh.23.1 billion, up from Ksh.19.7 billion in the previous year.

The lender attributed the improved profitability to growth in its core banking income, with net interest income rising 13 per cent to Ksh.33.2 billion.

Operating income increased by 12.5 per cent to Ksh.48.9 billion, supported by growth in interest income and resilient non-funded income.

The strong earnings came despite a rise in operating expenses, which increased by 9.2 per cent during the period.

The bank reported a cost-to-income ratio before provisions of 46 per cent, pointing to continued efforts to manage expenses while expanding its business.

Co-op Bank also recorded significant growth in its balance sheet, with total assets rising 7.1 per cent to Ksh.869.5 billion from Ksh.811.9 billion a year earlier.

Customer deposits increased by 11.2 per cent to Ksh.623.2 billion, while net loans and advances rose by a stronger 18.1 per cent to Ksh.462.2 billion.

The lender’s asset quality also improved during the period. Its non-performing loan ratio declined to 13.9 per cent from 17.2 per cent, while IFRS coverage improved to 80.7 per cent from 69.9 per cent. The cost of risk also fell to 1.8 per cent from 2.4 per cent.

The bank’s subsidiaries contributed to the overall performance, with Kingdom Bank posting profit before tax of Ksh.873 million, up from Ksh.491.1 million in the previous period.

Co-optrust Investment Services also recorded strong growth, with profit before tax rising 77.5 per cent to Ksh.640.5 million.

The strong results come as Co-op Bank continues to expand lending and financial services to businesses and households.

Its MSME segment accounted for 16.5 per cent of the bank’s loan book and 23.1 per cent of customer deposits, while E-Credit disbursements reached Ksh.40.4 billion during the six months.

Co-operative Bank Group Managing Director and Chief Executive Officer Gideon Muriuki said the lender remained focused on resilience and growth across diverse economic sectors.

“Our success is driven by distinctive customer experience, a universal banking model, a robust digital presence and an extensive physical footprint,” Muriuki said.

The bank said more than 90 per cent of customer transactions are now processed through alternative delivery channels, underlining the growing role of digital banking in its operations.

The lender’s return on average equity stood at 22 per cent, while return on average assets improved to 4.3 per cent from 3.7 per cent in the first half of 2025, further highlighting the improvement in profitability and shareholder value.