Co-op Bank Posts Record KSh18 Billion H1 Profit as Loan Book Grows 18%

Co-op Bank of Kenya has reported its strongest-ever first-half performance, with profit after tax (PAT) rising 28% year-on-year to KSh18 billion in the six months to June 2026.

Profit before tax increased 17.3% to KSh23.1 billion, supported by a 12.5% growth in operating income to KSh48.9 billion and a 13% increase in net interest income to KSh33.2 billion.

The lender’s balance sheet also expanded during the period, with total assets increasing 7.1% to KSh869.5 billion.

Customer deposits rose 11.2% to KSh623.2 billion, while net loans and advances increased by 18.1% to KSh462.2 billion, indicating continued growth in lending activity.

Co-op Bank’s asset quality also improved during the period. The non-performing loan (NPL) ratio declined to 13.9%, from 17.2% previously, while IFRS loan-loss coverage increased to 80.7% from 69.9%.

The cost of risk also eased to 1.8%, down from 2.4%, reflecting an improvement in the bank’s credit-risk position.

Investment in government securities increased 7% to KSh271.6 billion, while borrowed funds declined 11.4% to KSh58.2 billion.

Shareholders’ funds grew 9.4% to KSh171 billion, with return on average equity (ROAE) standing at 22%. Return on average assets (ROAA) improved to 4.3%, from 3.7%.

The bank maintained control over its operating costs, which increased 9.2%, slower than the 12.5% growth in operating income. The cost-to-income ratio before provisions stood at 46%.

Digital lending continued to expand, with e-Credit disbursements reaching KSh40.4 billion during the first half. Cumulative e-Credit disbursements stood at KSh561.2 billion.

Micro, small and medium enterprises (MSMEs) accounted for 16.5% of the bank’s loan book and 23.1% of customer deposits, underscoring their contribution to the lender’s business.

The bank’s subsidiaries also recorded significant growth.

Kingdom Bank’s profit before tax rose 77.8% to KSh873 million, while Co-optrust’s PBT increased 77.5% to KSh640.5 million. Co-optrust’s funds under management stood at KSh505.2 billion.

Co-op Bank South Sudan recorded a sharp increase in PBT to KSh224 million, from KSh56.9 million in the previous period, while Kingdom Securities’ PBT rose 23.3% to KSh77.9 million.

The results point to stronger earnings, improved asset quality and sustained balance-sheet expansion at the lender, despite continued pressure on the banking sector to manage credit risks and operating costs.