Co-op Bank Hits Record KSh23.1B Half-Year Profit, Up 17.3% as Lending and Digital Banking Surge

 Co-operative Bank of Kenya has delivered its best-ever half-year financial performance, posting a Profit Before Tax (PBT) of KSh23.1 billion for the six months ended June 30, 2026.

The result represents a 17.3 per cent increase from the KSh19.7 billion recorded in the first half of 2025, underlining the lender's continued growth despite a challenging and competitive operating environment.

Profit After Tax (PAT) grew even faster, increasing by 28 per cent to KSh18 billion, compared with KSh14.1 billion during the corresponding period last year.

The bank said the record performance reflects significant gains made under its 2025–2029 “Good to Great” Strategy and the “Soaring Eagle” Transformation Agenda, which are focused on strengthening customer experience, digital banking, operational efficiency, innovation and sustainable growth.

The performance places Co-op Bank among Kenya's leading banking institutions in terms of profitability, while its expanding loan book and deposit base point to continued growth in its core banking operations.

Assets climb to KSh869.5 billion

The Group's total assets expanded by 7.1 per cent to KSh869.5 billion, compared with KSh811.9 billion in H1 2025.

The growth was supported by increased customer deposits and lending activity.

Total deposits increased by 11.2 per cent to KSh623.2 billion, demonstrating continued customer confidence in the institution and providing a stronger funding base for lending and investment.

Net loans and advances rose by an impressive 18.1 per cent to KSh462.2 billion, from the previous year's level.

Government securities also increased by 7 per cent to KSh271.6 billion, up from KSh253.7 billion.

At the same time, borrowed funds declined by 11.4 per cent to KSh58.2 billion, compared with KSh65.7 billion in H1 2025. The reduction reflects the Group's efforts to optimise its funding mix and strengthen balance-sheet efficiency.

Shareholders' funds increased by 9.4 per cent to KSh171 billion, supported by continued retained earnings growth and strengthening of the Group's capital base.

Strong income growth supports record profit

Co-op Bank's net interest income rose by 13 per cent to KSh33.2 billion, supported by growth in the loan portfolio.

Operating income increased by 12.5 per cent to KSh48.9 billion, driven by higher net interest income and resilient non-funded income.

Operating expenses increased by 9.2 per cent, while the cost-to-income ratio before provisions stood at 46 per cent, reflecting continued efforts to manage costs as the business expands.

The Group's Return on Average Equity stood at 22 per cent, reflecting strong value creation for shareholders.

Return on Average Assets also improved to 4.3 per cent, compared with 3.7 per cent in H1 2025.

The figures demonstrate that the bank was able to grow its income and profitability while maintaining a relatively strong balance sheet and capital position.

Asset quality shows significant improvement

Alongside the strong profit growth, Co-op Bank reported improvements in several asset quality indicators.

The Group's Non-Performing Loans (NPL) ratio declined to 13.9 per cent, compared with 17.2 per cent in H1 2025.

IFRS coverage improved significantly to 80.7 per cent, up from 69.9 per cent, while the cost of risk improved to 1.8 per cent, compared with 2.4 per cent in the previous comparable period.

The bank attributed the improvement to proactive credit management, increased customer engagement and closer monitoring of its loan portfolio.

The Group maintained a strong liquidity position, with a liquidity ratio of 57.3 per cent.

Its total capital to total risk-weighted assets stood at 22.9 per cent, providing a strong platform for continued lending, investment and expansion.

More than 90% of transactions now digital

Digital transformation continues to be one of the biggest drivers of Co-op Bank's strategy.

More than 90 per cent of all customer transactions are now processed through alternative delivery channels, highlighting the rapid shift towards digital and self-service banking.

The bank's omni-channel platform, covering mobile, internet and USSD banking, is designed to provide customers with seamless access to financial services.

The digital infrastructure is complemented by an extensive physical network comprising 16,105 Co-op Kwa Jirani agents, 609 ATMs and Cash Deposit Machines and a 24-hour contact centre.

The Group has 223 branches across Kenya, South Sudan and Kingdom Bank, supported by 619 SACCO front offices.

The bank's Diaspora Banking segment also continued to expand, with the customer base exceeding 23,000.

Agency banking remained an important channel for financial inclusion, with deposits generated through agents rising by 8.7 per cent to KSh92.5 billion, compared with KSh85.1 billion in H1 2025.

The bank's workforce also expanded, with staff numbers reaching 6,591. This represents a total of 741 jobs created since H1 2025, reflecting continued investment in human capital and operational capacity.

Digital credit crosses KSh40 billion in six months

Co-op Bank continued to expand its digital credit offering, particularly through its E-Credit platform.

During H1 2026, E-Credit disbursements reached KSh40.4 billion, providing customers with faster and more convenient access to financing.

Since inception, the platform has disbursed more than KSh561.2 billion, highlighting the scale of digital lending within the Group.

The cumulative number of MCo-op Cash loan customers also increased to 15.6 million, demonstrating strong adoption of mobile-based credit solutions.

The bank said its digital lending propositions continue to play an important role in expanding access to formal financial services.

MSMEs remain a major growth engine

Small and medium-sized enterprises remained a key focus for Co-op Bank during the period.

The bank had onboarded 268,604 MSMEs onto its tailored MSME packages, while 71,298 businesses had received capacity-building and training support.

MSMEs accounted for 16.5 per cent of the bank's loan book and 23.1 per cent of customer deposits, demonstrating the importance of the segment to both lending and transactional banking.

The bank also continued to develop an integrated payments ecosystem for merchants.

Through the CoopTill App, businesses can monitor sales, request payments and access instant Till loans to support working-capital requirements.

The bank's merchant offering is complemented by POS services, Lipa Na M-Pesa and Chapa Pay, giving businesses multiple channels through which to receive and manage payments.

Kingdom Bank upgrades core banking platform

As part of its broader digital transformation programme, Kingdom Bank is upgrading its core banking system to the Finacle Core Banking system.

The system has already gone live at Co-op Bank Kenya and Co-op Bank South Sudan.

The new platform is expected to provide Kingdom Bank with a modern, agile and scalable technological foundation while supporting Group-wide synergies, innovation, operational efficiency and improved customer experience.

Co-op Bank intensifies focus on young people

Youth banking emerged as another major priority during H1 2026.

The Group established a dedicated Youth Financial Services Division as part of its strategy to build a digitally driven youth banking franchise.

The bank has set an ambition of serving more than 10 million youth customers in the medium term.

By the end of H1 2026, Co-op Bank had disbursed more than KSh27 billion to young customers, supporting over 500,000 youth in entrepreneurship and business expansion.

More than 150,000 young people had also accessed financial literacy and empowerment programmes designed to strengthen financial decision-making.

The bank's youth proposition includes digital account opening, savings, investments, credit, financial education and business support.

Through the Co-op Bank App, young customers can also access digital Money Market Fund and bond investment products.

Youth assets under management through these investment propositions had exceeded KSh900 million by H1 2026.

Subsidiaries deliver impressive growth

The Group's subsidiaries also made strong contributions to the overall financial performance.

Kingdom Bank Ltd recorded Profit Before Tax of KSh873 million, compared with KSh491.1 million previously, representing growth of 77.8 per cent.

Co-op Bancassurance Intermediary Ltd posted PBT of KSh812.7 million, supported by increased insurance penetration across the Group's customer base.

The Group's fund management business, Co-optrust Investment Services Ltd, reported Funds Under Management of KSh505.2 billion.

Its Profit Before Tax increased to KSh640.5 million, representing growth of 77.5 per cent from KSh360.8 million in H1 2025, when it recorded KSh360.8 million.

Co-op Bank of South Sudan Ltd recorded PBT of KSh224 million, up from KSh56.9 million.

Meanwhile, Kingdom Securities Ltd posted PBT of KSh77.9 million, compared with KSh63.2 million in H1 2025, representing growth of 23.3 per cent, driven by increased activity in capital markets.

The performance of the subsidiaries further strengthened Co-op Bank's universal banking model.

Sustainability remains part of growth strategy

Co-op Bank also continued to integrate sustainability, environmental, social and governance considerations into its business.

The Group made progress in climate risk management, including alignment with IFRS S1 and IFRS S2 as well as the Kenya Green Finance Taxonomy.

The initiatives are aimed at incorporating climate-related considerations into risk management, business decisions and long-term planning.

The bank also continued strengthening its sustainability reporting and disclosure readiness, with emphasis on long-term value creation, climate resilience and sustainability impact.

Foundation expands education and healthcare support

Through the Co-op Bank Foundation, the Group has continued to support education and social development.

A total of 12,601 students have benefited from the Foundation's scholarship programme to date.

The Foundation also supported the renovation of Kenyatta National Hospital's Orthopaedic Wards, a project that helped increase inpatient capacity by approximately 150 beds and improve access to specialised healthcare services.

The Group also continued supporting Kenya's co-operative movement and enterprise ecosystem.

By H1 2026, the bank had supported 3,960 co-operative advisory mandates, covering capacity-building engagements and advisory services.

Co-op Bank wins major industry awards

The bank's performance, innovation and digital transformation have continued to attract recognition in Kenya and internationally.

At the Euromoney Awards for Excellence 2026, Co-op Bank was recognised as Kenya's Best Retail Bank and Kenya's Best Digital Bank.

Global Finance named the institution Best Bank in Kenya 2026, citing its digital transformation, customer-focused innovation, financial solutions and value creation.

The bank was also named SME Bank of the Year 2026 at the African Banker Awards, reinforcing its position in supporting enterprise growth and financial inclusion.

Co-op Bank was further ranked among Africa's Fastest Growing Companies 2026 by Statista.

Other recognition included Digital Banking Inclusion Leader – East Africa by CFI and Best Commercial Bank of the Year – Kenya at the International Banker 2026 Africa & North Africa Banking Awards.

A growing customer base

Co-op Bank's growth continues to be supported by a large and expanding customer base.

The Group now serves more than 10 million account holders, while its deep connection to the co-operative movement gives it access to a large ecosystem of approximately 15 million co-operative members.

The bank's strategy combines a universal banking model with an extensive branch and agency network, digital channels and a customer-focused service culture known as “The Co-op Bank Way.”

The approach is designed to provide customers with consistent services across mobile, internet, USSD, branches, ATMs and agency outlets.

What the results mean for Co-op Bank

The H1 2026 results point to a bank expanding across several fronts at the same time—from traditional lending and deposits to digital credit, youth banking, MSME financing, investment management and insurance.

The 18.1 per cent growth in net loans, 11.2 per cent increase in deposits and 28 per cent rise in Profit After Tax indicate strong momentum in the Group's core business.

At the same time, the improvement in the NPL ratio and cost of risk suggests that the bank is placing greater emphasis on credit quality as it expands its loan book.

Its growing digital transaction volumes also demonstrate the increasing importance of technology in delivering banking services, while the expansion of youth and MSME products points to a strategy focused on building long-term customer relationships.

With KSh869.5 billion in total assets, more than KSh623 billion in deposits, over KSh462 billion in net loans and advances and more than KSh23 billion in half-year PBT, Co-op Bank enters the second half of 2026 from a position of considerable financial strength.

The Group says it remains focused on resilience, innovation, customer experience and sustainable growth as it pursues its “Good to Great” strategy and “Soaring Eagle” transformation agenda.

For shareholders, customers, employees, MSMEs and millions of members of the co-operative movement, the record half-year performance marks another significant milestone in Co-op Bank's growth story.