Consolidated Bank of Kenya has recorded a sharp improvement in its financial performance, with profit after tax rising more than 13-fold in the six months to June 2026 as the State-owned lender continued its efforts to strengthen its business.
The bank posted a profit after tax of Ksh 174.83 million for the half-year, representing a 1,349.5 per cent increase from the corresponding period. The strong performance was supported by growth in both interest and non-interest income, giving the lender a stronger position halfway through the financial year.
Net interest income, which remains one of the main sources of revenue for banks, increased by 33.9 per cent to Sh738.15 million. Non-interest income also performed well, rising 17.6 per cent to Sh331.55 million.
The growth comes as Consolidated Bank continues to rebuild its financial position following years of pressure on its balance sheet. The lender returned to profitability in 2025, posting Ksh 217.5 million in profit after tax, up from a loss of Ksh 135 million in 2024. Its 2025 results were helped by a 38 per cent increase in net interest income to Ksh 1.3 billion.
Deposits grow as loan book expands
The latest results also show that more money is flowing into the bank, with customer deposits increasing by 13 per cent to Ksh 13.57 billion.
Net loans and advances rose by 4.3 per cent to Ksh 8.44 billion, suggesting that the bank continued to increase lending to customers during the period. Consolidated Bank offers personal, business, mortgage, construction and other credit facilities as part of its lending business.
However, the growing loan book also comes with a major challenge.
Gross non-performing loans increased by 12.5 per cent to Ksh 4.27 billion. Loan loss provisions also climbed by 23.5 per cent to Ksh 199.85 million as the bank set aside more money to cover possible losses from loans that may not be repaid.
The increase in bad loans remains an area to watch, as strong profit growth can quickly come under pressure if a bank has to make large provisions for troubled loans.
Bank builds on turnaround
The lender’s total assets increased by 14.4 per cent to Ksh 21.05 billion, while total operating income rose by 28.3 per cent to Ksh 1.07 billion.
The performance follows a period of restructuring and efforts to improve the bank’s financial health. In its 2025 financial statements, the bank said it remained “resilient and on a growth trajectory” while noting plans to strengthen its capital position.
Consolidated Bank is majority-owned by the Kenyan Government, with the National Treasury and other State entities holding most of its shares.
The bank is also operating in a changing interest-rate environment. It announced that its base lending rate had been reduced to 8.75 per cent after the Central Bank of Kenya lowered the Central Bank Rate to the same level, part of the wider changes affecting borrowing costs in the banking sector.
For Consolidated Bank, the latest numbers offer encouraging signs that its turnaround is gaining momentum. The bigger test, however, will be whether it can maintain the profit growth while bringing down the rising level of non-performing loans.
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