Co-operative Bank Kenya posts record Ksh23.1B profit in best-ever half-year results

Co-operative Bank Kenya has unveiled its strongest half-year financial performance on record, with profit before tax rising 17.3 percent to Ksh23.1 billion for the six months ending June 30, 2026. The bank's profit before tax climbed from Ksh19.7 billion in the same period last year, while profit after tax increased by 28 percent to Ksh18 billion from Ksh14.1 billion.

These impressive figures marked the bank's best-ever half-year results and were attributed to its Good to Great Strategy and Soaring Eagle transformation agenda.

Group Managing Director and CEO Gideon Muriuki credited the bank's success to its distinctive customer experience, universal banking model, robust digital presence, and extensive physical footprint. The bank's net interest income grew by 13 percent to Ksh33.2 billion, while operating income increased by 12.5 percent to Ksh48.9 billion.

Total assets expanded by 7.1 percent to Ksh869.5 billion, with customer deposits rising by 11.2 percent to Ksh623.2 billion and net loans and advances increasing by 18.1 percent to Ksh462.2 billion.

Co-operative Bank Kenya's asset quality improved significantly, with the non-performing loan ratio falling to 13.9 percent from 17.2 percent in the first half of 2025. The bank's IFRS loan-loss coverage also increased to 80.7 percent from 69.9 percent, and the cost of risk declined to 1.8 percent from 2.4 percent. Despite expanding operations, the bank managed costs effectively, with operating expenses rising by 9.2 percent, which was slower than the growth in operating income. The cost-to-income ratio before provisions stood at 46 percent.

The bank's digital banking services played a crucial role in its growth, with more than 90 percent of customer transactions processed through alternative channels, including mobile banking, internet banking, and USSD services. The bank's agency banking network also expanded its reach, with deposits generated through Co-op Kwa Jirani agents increasing by 8.7 percent to Ksh92.5 billion.

Co-operative Bank Kenya now serves over 10 million account holders through 223 branches, 609 ATMs and cash deposit machines, and more than 16,000 agency banking outlets.

The bank continued to support small and medium-sized businesses (MSMEs), with E-Credit disbursements reaching Ksh40.4 billion during the six months and over 268,000 MSMEs on tailored banking packages. MSMEs accounted for 16.5 percent of the bank's loan book and 23.1 percent of customer deposits. The bank also expanded lending to young entrepreneurs, disbursing over Ksh27 billion to youth customers by June 2026, supporting more than 500,000 young people in entrepreneurship and business expansion.