Co-operative Bank of Kenya has posted a 28 percent growth in net profit to Sh18.02 billion in the first half of the year ended June 2026, driven by increased interest and non-interest income.

The group’s net earnings grew from Sh14.08 billion posted in a similar period last year, coming on the back of net interest income rising 13 percent to Sh33.19 billion and non-interest income jumping 11.6 percent to Sh15.75 billion.

The review period saw Co-op Bank’s operating expenses rise by 9.2 percent to Sh26.26 billion from Sh24.07 billion, with staff costs rising 13.4 percent to Sh11.22 billion.

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, amid an increase in physical branches by 11 to 223.

Co-op’s provision for loan defaults eased by 17.5 percent to Sh3.73 billion as the stock of gross non-performing loans (NPLs) fell to Sh72.56 billion from Sh76.28 billion.

The lender’s NPL 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 Sh574.45 million from Sh318.93 million, 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 Sh812.7 million from Sh790.8 million, 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 Sh640.5 million from Sh360.8 million, as funds under management hit Sh505.2 billion from Sh461.7 billion.

Co-op Bank of South Sudan, in which Co-op holds a 51 percent stake, nearly quadrupled its pre-tax profit to Sh224 million from Sh56.9 million, reflecting an improved operating environment in the country.

The review period saw Kingdom Securities return to a pre-tax profit of Sh77.9 million, marking a 23.3 percent rise from Sh63.2 million, driven by increased activity in the capital markets.

Co-op Bank Group’s asset base grew to Sh869.47 billion from Sh811.91 billion, while deposits increased by 13.4 percent to Sh621.27 billion.

→ palushula@ke.nationmedia.com

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