Nairobi: Co-operative Bank of Kenya has posted a record Sh23.1 billion profit before tax for the first half of 2026, representing a 17.3 percent increase from Sh19.7 billion recorded during the same period last year. According to Kenya News Agency, their half-year financial results report released on Wednesday, 12th August, stated that this performance marks the bank’s best-ever half-year result, with profit after tax rising by 28 percent to Sh18 billion, compared to Sh14.1 billion in the first half of 2025.
The strong performance was supported by growth in both interest and non-interest income, with operating income increasing by 12.5 percent to Sh48.9 billion. The report indicated that net interest income rose by 13 percent to Sh33.2 billion, reflecting increased lending activity during the period.
The bank’s balance sheet also expanded, with total assets growing by 7.1 percent to Sh869.5 billion, while customer deposits increased by 11.2 percent to Sh623.2 billion. Net loans and advances recorded stronger growth, rising by 18.1 percent to Sh462.2 billion, as the bank continued to extend credit to customers and businesses.
The government securities portfolio increased by seven percent to Sh271.6 billion, while borrowed funds declined by 11.4 percent to Sh58.2 billion, indicating efforts to optimize the Group’s funding structure. The bank reported an improvement in asset quality despite the rapid expansion of its loan portfolio. The ratio of non-performing loans to the total loan book declined to 13.9 percent, from 17.2 percent in the first half of 2025.
Loan-loss coverage under International Financial Reporting Standards (IFRS) improved from 69.9 percent to 80.7 percent, while the cost of risk declined from 2.4 percent to 1.8 percent. These developments indicate strengthened credit-risk management as the lender increased lending during the period.
Co-operative Bank continued to expand its physical and alternative banking channels, with the Group having 223 branches across Kenya and South Sudan through its operations and subsidiaries. The bank also had 16,105 Co-op Kwa Jirani agents and 609 ATMs and cash deposit machines during the period. Deposits mobilized through agency banking increased by 8.7 percent to Sh92.5 billion, up from Sh85.1 billion recorded in the corresponding period last year.
The bank also reported continued growth in diaspora banking, with the number of customers exceeding 23,000. Its workforce increased to 6,591 employees, representing an addition of 741 staff compared with the first half of 2025. The results build on the momentum recorded in the first quarter of 2026, when the bank posted Sh11.37 billion in profit before tax, an 18.1 percent increase from Sh9.63 billion in the first quarter of 2025. Profit after tax for the first quarter stood at Sh8.41 billion, representing a 21.3 percent increase.
The bank attributed the latest performance to continued implementation of its 2025-2029 Good to Great Strategy and the Soaring Eagle Transformation Agenda, which focus on growth, operational efficiency, digital transformation, and strengthening the institution’s position within the cooperative and wider banking ecosystem. The strong half-year results indicate that the lender maintained its growth momentum into the second quarter, supported particularly by increased lending and stronger income generation.
The bank is expected to provide further details on its performance and outlook during its investor briefing, including the contribution of its subsidiaries and performance of its digital, micro, small and medium enterprises (MSME), and cooperative-sector businesses.
