Co-operative Bank of Kenya, better known as Co-op Bank, has posted a strong profit before tax of KSh23.1 billion for the half-year ended 30th June 2026, up from KSh19.7 billion recorded in the same period in 2025, representing an impressive 17.3% growth. Profit After Tax grew by a strong 28% to KSh18 billion from KSh14.1 billion in the first half of 2025.
“This is the BEST EVER half year performance for the Group and the strong performance underscores the significant gains made under the 2025-2029 Good to Great Strategy and the “Soaring Eagle” Transformation Agenda,” says Dr. Gideon Muriuki, the Co-operative Bank Group Managing Director and CEO.
The Group maintained a strong liquidity and capital position, with a liquidity ratio of 57.3% and total capital to total risk weighted assets at 22.9%, providing a robust platform for continued lending, investment and long-term value creation.
“We continued to strengthen asset quality through proactive credit management, customer engagement and portfolio monitoring,” Dr Muriuki said. “The Group NPL ratio improved to 13.9 per cent from 17.2 per cent in H1 2025, IFRS coverage improved to 80.7 per cent from 69.9 per cent, and cost of risk improved to 1.8 per cent from 2.4 per cent.”
HALF YEAR 2026 PERFORMANCE HIGHLIGHTS
- Return on Average Equity stood at 22%, reflecting sustained value creation for shareholders.
- Return on Average Assets improved to 4.3%, compared to 3.7 per cent in H1 2025.
- Total Assets increased by 7.1% to KSh 869.5 billion, from KSh 811.9 billion in H1 2025.
- Total Deposits grew by 11.2% to KSh 623.2 billion, while net loans and advances increased by 18.1% to KSh 462.2 billion.
- Government Securities grew by 7.0 per cent to KSh 271.6 billion, from KSh 253.7 billion in H1 2025.
- Borrowed funds reduced by 11.4% to KSh 58.2 billion, from KSh 65.7 billion in H1 2025, reflecting continued optimisation of the Group’s funding mix.
- Shareholders’ Funds increased by 9.4% to KSh 171.0 billion, supported by continued retained earnings growth and strengthening of the Group’s capital base.
- Net Interest Income increased by 13% to KSh 33.2 billion.
- Operating income increased by 12.5% to KSh 48.9 billion, driven by growth in net interest income and resilient non-funded income.
- Operating expenses increased by 9.2% , with the cost-to-income ratio before provisions at 46.0 per cent.
Digital Leadership and Scale
The Group continued to strengthen its digital leadership, with over 90% of all customer transactions processed through alternative delivery channels, reflecting sustained adoption of convenient, secure and accessible banking solutions. The Bank’s omni-channel platform across mobile, internet and USSD continues to support seamless and efficient service delivery.
MSME, E-Credit and Financial Inclusion
The Group continued to deepen financial inclusion and enterprise growth through its MSME and digital credit propositions, reinforcing its role in supporting livelihoods and economic activity across the country.
E-Credit disbursements in H1 2026 reached KSh 40.4 billion, supporting customers with convenient and accessible credit solutions.
MSMEs remained a key segment for the Group, accounting for 16.5% of the Bank’s loan book and 23.1% of customer deposits, reflecting strong engagement across both lending and transactional relationships.
Youth Financial Services
The Group accelerated its youth banking agenda in H1 2026, anchored on a clear mission to transform the financial lives of young people and empower them to grow. The Youth Financial Services Division was created to reinforce Co-op Bank’s long-term commitment to building a market-leading, digitally driven youth franchise.
By H1 2026, the Bank had disbursed over KSh 27.0 billion to youth customers, supporting over 500,000 youth in entrepreneurship and business expansion.
Performance of Subsidiaries
The Group’s subsidiaries continued to make a positive contribution to performance, reinforcing the strength of the universal banking model.
Kingdom Bank Ltd posted a profit before tax of KSh873.0 million, from KSh 491.1 million in the previous period, representing growth of 77.8%, supported by continued expansion in its retail and business banking segments.
Co-op Bancassurance Intermediary Ltd recorded BPT of KSh 812.7 million, supported by deeper insurance penetration across the customer base.
Co-optrust Investment Services Ltd, the fund management business, delivered strong growth with Funds Under Management of KSh 505.2 billion. Profit Before Tax grew to KSh 640.5 million, representing growth of 77.5 per cent from KSh 360.8 million in H1 2025.
Co-op Bank of South Sudan Ltd recorded Profit Before Tax of KSh 224.0 million, compared to KSh 56.9 million in H1 2025, reflecting improved performance in the face of a dynamic operating environment.
Kingdom Securities Ltd delivered Profit Before Tax of KSh 77.9 million, compared to KSh 63.2 million in H1 2025, representing growth of 23.3 per cent, driven by increased activity in the capital markets.
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