(NAIROBI, KENYA) – Co-operative Bank of Kenya has posted a 28 percent growth in net profit to KES 18.02 billion in the first half of the year ended June 2026. The growth was driven by increased interest and non-interest income. The profit figure is equal to $139 million or £109 million at current exchange rates.
The group’s net earnings grew from KES 14.08 billion posted in a similar period last year. That earlier figure is equal to $109 million or £85 million. Net interest income rose 13 percent to KES 33.19 billion, equal to $257 million or £202 million. Non-interest income jumped 11.6 percent to KES 15.75 billion, equal to $122 million or £96 million.
The review period saw Co-op Bank’s operating expenses rise by 9.2 percent to KES 26.26 billion from KES 24.07 billion. That is equal to $203 million or £159 million, up from $186 million or £146 million. Staff costs rose 13.4 percent to KES 11.22 billion, equal to $87 million or £68 million.
The rise in staff costs was attributed to the hiring of additional employees as the lender expanded its branch network. The bank said its headcount grew by 741 over the review period to 6,591. Physical branches increased by 11 to 223.
Co-op’s provision for loan defaults eased by 17.5 percent to KES 3.73 billion. That is equal to $29 million or £23 million. The stock of gross non-performing loans fell to KES 72.56 billion from KES 76.28 billion. That is equal to $561 million or £441 million, down from $590 million or £464 million.
The lender’s non-performing loan ratio improved to 13.9 percent at the end of June this year from 17.2 percent in a similar period last year.
“We continued to strengthen asset quality through proactive credit management, customer engagement and portfolio monitoring,” Gideon Muriuki, managing director at Co-op Bank, said on Wednesday.
Subsidiaries continued to support growth in the group’s profit. Kingdom Bank, which is 90 percent owned by Co-op Bank Group, saw its net profit rise 80.1 percent to KES 574.45 million from KES 318.93 million. That is equal to $4.4 million or £3.5 million, up from $2.5 million or £1.9 million. The growth was supported by continued expansion in its retail and business banking segments.
“The group’s subsidiaries continued to make a positive contribution to performance, reinforcing the strength of the universal banking model,” said Mr Muriuki.
Co-op Bancassurance Intermediary’s pre-tax profit rose to KES 812.7 million from KES 790.8 million. That is equal to $6.3 million or £4.9 million, up from $6.1 million or £4.8 million. The rise was supported by increased insurance penetration across the customer base.
The lender said its fund management business, Co-optrust Investment Services, grew its gross profit by 77.5 percent to KES 640.5 million from KES 360.8 million. That is equal to $5 million or £3.9 million, up from $2.8 million or £2.2 million. Funds under management hit KES 505.2 billion from KES 461.7 billion, equal to $3.9 billion or £3.1 billion, up from $3.6 billion or £2.8 billion.
Co-op Bank of South Sudan, in which Co-op holds a 51 percent stake, nearly quadrupled its pre-tax profit to KES 224 million from KES 56.9 million. That is equal to $1.7 million or £1.4 million, up from $440,000 or £346,000. The jump reflected an improved operating environment in the country.
The review period saw Kingdom Securities return to a pre-tax profit of KES 77.9 million, marking a 23.3 percent rise from KES 63.2 million. That is equal to $602,000 or £473,000, up from $489,000 or £384,000. The rise was driven by increased activity in the capital markets.
Co-op Bank Group’s asset base grew to KES 869.47 billion from KES 811.91 billion. That is equal to $6.7 billion or £5.3 billion, up from $6.3 billion or £4.9 billion. Deposits increased by 13.4 percent to KES 621.27 billion, equal to $4.8 billion or £3.8 billion.