The Co-operative Bank of Kenya has announced a 28 percent profit after tax increase to Sh18 billion in the first six months of the current financial year, up from Sh14.1 billion in the first half of 2025.
This profit after tax was derived from a profit before tax of Sh23.1 billion for the six months ended June 30, 2026, which was a 17.3 percent increase in compared with Sh19.7 billion profit before tax that the bank recorded during the same period in 2025.
The lender described the performance as its best-ever half-year result, attributing the growth to the implementation of its 2025–2029 Good to Great Strategy and the Soaring Eagle transformation agenda.
During the period under review, Co-op Bank’s total assets increased by 7.1 percent to Sh869.5 billion, compared with Sh811.9 billion a year earlier. Customer deposits grew by 11.2 per cent to Sh623.2 billion, while net loans and advances increased by a significantly stronger 18.1 percent to Sh462.2 billion.
The bank’s government securities portfolio also expanded by 7 percent to Sh271.6 billion. At the same time, borrowed funds declined by 11.4 percent to Sh58.2 billion, pointing to an optimization of the Group’s funding mix. In the same period, net interest income increased by 13 percent to Sh33.2 billion, while operating income rose 12.5 percent to Sh48.9 billion. Operating expenses increased by 9.2 percent, with the cost-to-income ratio before provisions standing at 46 percent.
The bank also reported an improvement in asset quality during the period. Its non-performing loan ratio declined from 17.2 percent in the first half of 2025 to 13.9 percent in H1 2026. IFRS coverage improved from 69.9 percent to 80.7 percent, while the cost of risk declined from 2.4 per cent to 1.8 percent.
Co-op Bank reported a liquidity ratio of 57.3 percent and total capital to total risk-weighted assets of 22.9 percent, providing a stronger capital and liquidity position to support lending and investment.
Digital channels continued to play a major role in the bank’s operations during the period, with more than 90 per cent of customer transactions processed through alternative delivery channels.
The bank’s digital infrastructure includes mobile banking, internet banking and USSD services, supported by its physical distribution network. Co-op Bank reported 16,105 Co-op Kwa Jirani agents, 609 ATMs and cash deposit machines, a 24-hour contact centre and 223 branches across Kenya, South Sudan and Kingdom Bank.
Agency banking also continued to expand. Deposits generated through agents increased by 8.7 percent to Sh92.5 billion, from Sh85.1 billion in H1 2025. The Group’s diaspora banking customer base also surpassed 23,000 customers, while staff numbers rose to 6,591, representing 741 additional jobs since the first half of 2025.
Co-op Bank expands MSME financing
Small and medium-sized enterprises remained a significant part of Co-op Bank’s growth strategy. The bank reported that 268,604 MSMEs had been onboarded onto tailored MSME packages, while 71,298 MSMEs had received capacity-building and training support. MSMEs accounted for 16.5 percent of the bank’s loan book and 23.1 percent of customer deposits, highlighting their importance to the bank’s lending and transactional business.
Co-op Bank salary account enhances financial convenience for Kenyan workers
Digital credit was another major growth area. E-Credit disbursements reached Sh40.4 billion during H1 2026, taking cumulative disbursements since inception to more than Sh561.2 billion.
The cumulative number of MCo-op Cash loan customers increased to 15.6 million. For merchants, the bank’s integrated payments ecosystem allows businesses to monitor sales, request payments and access instant Till loans for working capital through the CoopTill App, alongside POS, Lipa Na M-Pesa and Chapa Pay services.
Co-op Bank is also increasing its focus on young customers. During the first half of 2026, the bank had disbursed more than KSh27 billion to over 500,000 young people for entrepreneurship and business expansion.
More than 150,000 young people had also received financial literacy and empowerment support. The bank said its youth financial services proposition includes digital account opening, savings, investments, credit, financial literacy and business support. Youth assets under management reached KSh900 million through digital access to money market fund and bond investment products.
Subsidiaries strengthen Group performance
Co-op Bank’s subsidiaries also contributed to the overall performance.
Kingdom Bank recorded a 77.8 per cent increase in profit before tax to KSh873 million, compared with KSh491.1 million in H1 2025.
Co-op Trust Investment Services recorded funds under management of KSh505.2 billion, while its profit before tax rose 77.5 per cent to KSh640.5 million.
Co-op Bank of South Sudan reported profit before tax of KSh224 million, while Kingdom Securities posted KSh77.9 million in profit before tax, up 23.3 per cent from the previous year.
Co-op Bank recognised among Kenya’s leading banks
The bank’s performance has also been accompanied by several industry recognitions.
Co-op Bank was named Kenya’s Best Retail Bank and Kenya’s Best Digital Bank at the Euromoney Awards for Excellence 2026.
Global Finance named it Best Bank in Kenya 2026, while the African Banker Awards named it SME Bank of the Year 2026.
The bank was also ranked among Africa’s Fastest Growing Companies 2026 by Statista and received recognition for digital banking inclusion and commercial banking.
Co-op Bank current account: A flexible banking solution for individuals, businesses
What Co-op Bank’s H1 2026 results mean for businesses
The results point to a banking strategy increasingly built around three major growth areas: digital financial services, MSME banking and financial inclusion.
For Kenyan businesses, particularly SMEs, the expansion of digital credit, merchant payments, agency banking and tailored MSME products could provide greater access to working capital and transactional services.
The strong growth in loans and advances also suggests that lending remains a major engine of the bank’s balance-sheet expansion, while the improvement in the non-performing loan ratio indicates progress in managing credit risk.
For investors, the combination of higher profitability, stronger deposits, improved asset quality and a growing capital base provides important indicators of the Group’s financial position going into the second half of 2026.
Overall, Co-op Bank’s H1 2026 performance demonstrates how scale, digital transformation, SME financing and disciplined balance-sheet management are increasingly shaping competition in Kenya’s banking sector.
