Co-operative Bank of Kenya posted a 28 percent rise in net profit to Ksh 18.02 billion for the half-year ended June 2026, supported by sustained expansion in both interest and non-interest income lines.
The group’s bottom line advanced from Ksh 14.08 billion in the corresponding period last year, reflecting a robust operational environment across its core banking activities.
The lender’s net interest income grew 13 percent to Ksh 33.19 billion, while non-interest income registered an 11.6 percent increase to Ksh 15.75 billion, providing a dual engine for earnings growth.
Operating expenses, however, climbed 9.2 percent to Ksh 26.26 billion from Ksh 24.07 billion, with staff costs rising 13.4 percent to Ksh 11.22 billion.
The increase in payroll expenses stemmed from a net addition of 741 employees and the expansion of the branch network by 11 new outlets to a total of 223 locations nationwide.
Asset quality showed clear improvement during the review period, with provisions for loan defaults declining by 17.5 percent to Ksh 3.73 billion. The stock of gross non-performing loans fell to Ksh 72.56 billion from Ksh 76.28 billion, driving the NPL ratio down to 13.9 percent from 17.2 percent a year earlier.
“We continued to strengthen asset quality through proactive credit management, customer engagement and portfolio monitoring,” said Muriuki, managing director at Co-op Bank.
Subsidiary operations delivered strong contributions to the group’s overall performance. Kingdom Bank, in which Co-op holds a 90 percent stake, recorded an 80.1 percent surge in net profit to Ksh 574.45 million, buoyed by continued penetration into retail and business banking segments.
Co-op Bancassurance Intermediary generated Ksh 812.7 million in pre-tax profit, while the fund management unit, Co-optrust Investment Services, posted a 77.5 percent rise in gross profit to Ksh 640.5 million, with funds under management expanding to Ksh 505.2 billion.
Regional operations also posted gains. Co-op Bank of South Sudan, where the group holds a 51 percent stake, nearly quadrupled its pre-tax profit to Ksh 224 million from Ksh 56.9 million as the operating environment stabilised.
Meanwhile, Kingdom Securities returned to profitability with a pre-tax profit of Ksh 77.9 million, marking a 23.3 percent increase on the back of stronger capital market activity.
The group’s total asset base expanded to Ksh 869.47 billion from Ksh 811.91 billion, while customer deposits increased by 13.4 percent to Ksh 621.27 billion, reinforcing the bank’s liquidity position and capacity for further balance sheet growth.
“The group’s subsidiaries continued to make a positive contribution to performance, reinforcing the strength of the universal banking model,” said Muriuki.
