Co-operative Bank Group CEO and MD Gideon Muriuki/ FILE
Co-op Bank has posted a 28 per cent growth in net profit to Sh18 billion for the six months ended June 2026, driven by higher lending and growth in interest income.
This was up from Sh14.1 billion recorded in the corresponding period last year, marking the bank’s best-ever half-year performance, with stronger contributions from its subsidiaries.
Profit before tax increased by 17.3 per cent to Sh23.1 billion from Sh19.7 billion. The strong earnings were supported by a significant expansion of the bank’s loan book, with net loans and advances rising 18.1 per cent to Sh462.2 billion.
This helped push net interest income up 13 per cent to Sh33.2 billion. Overall operating income grew 12.5 per cent to Sh48.9 billion, supported by growth in net interest income and resilient non-funded income.
The bank also benefited from improved asset quality, which helped contain the cost of credit. Group non-performing loan ratio fell to 13.9 per cent from 17.2 per cent a year earlier, while the cost of risk improved to 1.8 per cent from 2.4 per cent.
The improvement in asset quality, coupled with continued growth in lending, provided a major boost to the bottom line as the bank expanded credit to businesses and households.
Co-op Bank’s deposits also increased strongly, rising 11.2 per cent to Sh623.2 billion, giving the lender a larger pool of funds to support lending and investment. Government securities grew seven per cent to Sh271.6 billion.
The lender’s total assets expanded 7.1 per cent to Sh869.5 billion from Sh811.9 billion, while shareholders’ funds increased 9.4 per cent to Sh171 billion.
The bank kept operating costs under control, with expenses rising 9.2 per cent, slower than the growth in operating income. This resulted in a cost-to-income ratio before provisions of 46 per cent. Subsidiaries also made a growing contribution to the group’s earnings.
Kingdom Bank posted profit before tax of Sh873 million, up 77.8 per cent from Sh491.1 million. Co-optrust Investment Services increased profit before tax by 77.5 per cent to Sh640.5 million, while Co-op Bank of South Sudan’s profit before tax rose to Sh224 million from Sh56.9 million.
Kingdom Securities also recorded a 23.3 per cent increase in profit before tax to Sh77.9 million. Digital banking and agency services continued to support the group’s growth strategy, with more than 90 per cent of customer transactions processed through alternative delivery channels.
Agency-generated deposits increased 8.7 per cent to Sh92.5 billion, while digital E-Credit disbursements reached Sh40.4 billion during the period.
“The performance reflects gains from our 2025-2029 Good to Great Strategy and the Soaring Eagle transformation agenda,” group managing director and CEO, Gideon Muriuki, said.
Co-op Bank’s return on average equity, which measures a company's performance using its average shareholders' equity, stood at 22 per cent, while return on average assets improved to 4.3 per cent from 3.7 per cent.
The lender said its strong capital and liquidity position would provide room for continued lending, investment and expansion in the second half of the year.
