Co-operative Bank of Kenya has announced a 28 percent increase in net profit to Ksh 18 billion for the six months ending June 2026, marking its best half-year performance to date.

The bank’s profit after tax rose from Ksh 14.1 billion in H1 2025 to Ksh 18 billion, an increase of Ksh 3.9 billion. Profit before tax also improved by 17.3 percent, reaching Ksh 23.1 billion compared to Ksh 19.7 billion previously.

Key Financial Highlights

  • Net interest income grew 13 percent to Ksh 33.2 billion.
  • Operating income increased by 12.5 percent to Ksh 48.9 billion.
  • Operating expenses rose 9.2 percent, with a cost-to-income ratio of 46 percent before provisions.
  • Total assets expanded 7.1 percent to Ksh 869.5 billion.
  • Customer deposits climbed 11.2 percent to Ksh 623.2 billion.
  • Net loans and advances surged 18.1 percent to Ksh 462.2 billion.

Improved Asset Quality

The bank reported a decline in its non-performing loan ratio to 13.9 percent from 17.2 percent a year earlier. IFRS coverage rose to 80.7 percent from 69.9 percent, and the cost of risk dropped to 1.8 percent from 2.4 percent.

Subsidiary Contributions

  • Kingdom Bank’s profit before tax increased to Ksh 873 million from Ksh 491.1 million.
  • Co-optrust Investment Services’ profit before tax soared 77.5 percent to Ksh 640.5 million.

Business Growth and Digital Expansion

The bank’s lending to micro, small, and medium enterprises (MSMEs) accounted for 16.5 percent of the loan book, while MSME deposits constituted 23.1 percent of total customer deposits. E-Credit disbursements hit Ksh 40.4 billion during the period.

Co-operative Bank Group Managing Director and CEO Gideon Muriuki attributed the strong results to a blend of excellent customer service, a universal banking model, robust digital platforms, and a wide physical presence. He noted that over 90 percent of transactions now occur through alternative digital channels.

Performance Ratios

  • Return on average equity stood at 22 percent.
  • Return on average assets improved to 4.3 percent from 3.7 percent in the prior year.