Co-operative Bank of Kenya has reported its strongest first-half performance on record, with profit after tax climbing 28 per cent to Sh18 billion in the six months to June 2026.
The earnings growth was underpinned by a 13 per cent increase in net interest income to Sh33.2 billion, while operating income rose 12.5 per cent to Sh48.9billion. Operating expenses grew at a slower pace of 9.2 per cent, allowing the bank to hold its cost-to-income ratio, before provisions, at 46 per cent
Net loans and advances grew 18.1 per cent to Sh462.2 billion, outpacing deposit growth of 11.2 per cent, which took the deposit base to Sh623.2 billion. Total assets increased by 7.1 per cent to Sh869.5 billion.
Non-performing loan ratio fell to 13.9 per cent from 17.2 per cent a year earlier, while IFRS loan-loss coverage increased to 80.7 per cent from 69.9 per cent, giving the bank a thicker cushion against future defaults.
Co-op Bank's non-banking units also contributed to the strong performance. Kingdom Bank’s profit before tax rose 77.8 per cent to Sh873 million driven by continued expansion in its retail and business banking segments.
Co-optrust Investment Services, the group's asset management business, posted pre-tax profit growth of 77.5 per cent to Sh640.5 million, with funds under management reaching Sh505.2 billion.
Co-op Bancassurance Intermediary Ltd recorded profit before tax of Sh812.7 million, supported by deeper insurance penetration across the customer base.
Kingdom Securities Ltd delivered pre-tax earnings of Sh77.9 million, compared to Sh63.2 million last year during the same period, representing a growth of 23.3 per cent, driven by increased activity in the capital markets.
Co-op Bank South Sudan, meanwhile, saw pre-tax profit nearly quadruple to Sh224 million.
Co-op Bank continued to push into digital lending and payments, with e-credit disbursements, loans issued through mobile and digital channels, reaching Sh40.4 billion during the half year.
More than 90 per cent of customer transactions were processed through alternative channels, while deposits generated through its agency network increased 8.7 per cent to Sh92.5 billion.
Co-op Bank serves more than 10 million account holders through a network of 223 branches, 609 ATMs and cash deposit machines, and 16,105 agency outlets
