Co-op Bank Profit Soars to Record Ksh23.1 Billion in First Half of 2026

Co-operative Bank of Kenya has posted its strongest-ever half-year financial performance, recording a profit before tax of Ksh23.1 billion for the six months ended June 30, 2026.

The latest results, announced on Wednesday, August 12, show that the lender’s pre-tax earnings increased by 17.3 per cent, up from Ksh19.7 billion recorded during a similar period in 2025.

The bank attributed the performance to continued growth in both interest and non-interest income as it implements its 2025–2029 strategic plan.

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Profit after tax rose even faster, increasing by 28 per cent to Ksh18 billion from Ksh14.1 billion reported in the first half of last year.

Strong Growth in Interest Income

Co-op Bank’s operating income increased by 12.5 per cent to Ksh48.9 billion during the period, supported by stronger earnings from lending and other banking activities.

Net interest income, which represents the difference between interest earned from loans and investments and interest paid on deposits and other funding, grew by 13 per cent to Ksh33.2 billion.

The improved income performance came alongside significant expansion of the bank’s balance sheet.

Total assets increased by 7.1 per cent to Ksh869.5 billion, compared with Ksh811.9 billion recorded in the first half of 2025.

Customer deposits also remained on an upward trajectory, growing by 11.2 per cent to Ksh623.2 billion.

Meanwhile, net loans and advances expanded by 18.1 per cent to Ksh462.2 billion, indicating stronger credit activity during the six-month period.

Asset Quality Improves

The growth in lending was accompanied by an improvement in the quality of the bank’s loan portfolio.

Co-op Bank’s non-performing loan ratio declined to 13.9 per cent, down from 17.2 per cent a year earlier.

The lender also reported an improvement in its IFRS loan-loss coverage ratio, which increased from 69.9 per cent to 80.7 per cent.

At the same time, the bank’s cost of risk declined to 1.8 per cent, compared with 2.4 per cent in the corresponding period of 2025.

Co-op Bank Group Managing Director and CEO Dr. Gideon Muriuki highlighted the lender’s contribution to youth entrepreneurship, noting that the bank had disbursed more than Ksh27 billion to young customers by the end of June 2026.

According to Muriuki, the financing had supported more than 500,000 young people in establishing or expanding businesses.

Expenses and Digital Banking

Despite the strong growth in income, operating expenses increased by 9.2 per cent during the period. The bank’s cost-to-income ratio before provisions stood at 46 per cent.

Co-op Bank also continued to encourage customers to use digital and alternative banking channels rather than relying solely on physical branches.

More than 90 per cent of customer transactions were processed through alternative channels during the first half of the year, reflecting the growing importance of digital and agency banking to the lender’s operations.

The group’s customer base has now surpassed 10 million account holders.

Its distribution network comprises 223 branches, 609 ATMs and cash deposit machines, and 16,105 Co-op Kwa Jirani agents, giving customers access to banking services across a wide geographical area.

Bank Adds 741 Jobs

Co-op Bank also expanded its workforce during the period.

The lender reported that its total number of employees had risen to 6,591, representing the creation of 741 jobs since the first half of 2025.

The bank said its strong financial position gives it room to continue supporting customers through lending while investing in its operations and long-term growth.

As of June 2026, Co-op Bank reported a liquidity ratio of 57.3 per cent and total capital to risk-weighted assets of 22.9 per cent.

The record half-year results position the lender strongly as it continues executing its 2025–2029 strategy, with growing lending, deposits, digital transactions and customer numbers providing a foundation for further expansion in the Kenyan banking sector.