Co-operative Bank of Kenya has posted an after-tax profit of Sh14.1 billion for the six months to June 2025, an 8.4 percent increase from Sh13 billion in the same period last year, driven by strong growth in both interest and non-interest income.
Operating income rose 10.8 percent to Sh43.5 billion, supported by a 23.1 percent jump in net interest income to Sh44.8 billion.
Chief Executive Officer Gideon Muriuki attributed the results to the Group’s strategic focus on sustainable growth, resilience, and agility. The performance lifted the lender’s return on equity to 19.9 percent, underscoring its ability to deliver solid value to shareholders.
“Co-operative Bank Group remains steadfast in advancing its strategic priorities, firmly grounded in resilience and growth across diverse economic sectors,” he said.
The listed lender is majority-owned by the 15-million-member co-operative movement through Co-op Holdings Co-operative Society Limited, which holds a 64.56 percent stake.
Operating expenses climbed 13 percent to Sh24 billion from Sh21.27 billion, reflecting higher provisioning for loan defaults and rising staff costs. The bank increased loan-loss provisions by 50 percent to Sh4.5 billion from Sh3 billion, citing a tough operating environment for borrowers.
Staff costs rose 8.43 percent to Sh9.9 billion, driven by pay increases and the hiring of additional employees as the bank expanded its branch network.
During the period, Co-op Bank’s staff count grew by 450 to 5,850. The lender opened 15 new branches in Kenya, bringing its total to 212, while subsidiaries also expanded their footprint—Kingdom Bank opened in Machakos and Co-operative Bank of South Sudan added a branch in Wau.
Mr Muriuki noted that subsidiaries contributed positively to group performance. Co-op Trust Investment Services posted a profit before tax of Sh360.8 million, up 152.8 percent, with funds under management rising to Sh461.7 billion.
Co-op Bancassurance earned Sh790.8 million in profit before tax, Kingdom Bank posted Sh491.1 million, and Kingdom Securities recorded Sh63.2 million. Co-operative Bank of South Sudan posted a restated profit of Sh56.9 million after accounting for hyperinflation.
The first half of the year also saw a more supportive monetary policy stance from the Central Bank of Kenya (CBK), which contributed to the banking sector’s performance.
In June, the CBK reduced its benchmark lending rate by 25 basis points to 9.75 percent, marking the sixth consecutive cut. The regulator moved again in August, lowering the rate to 9.50 percent, citing inflation remaining within the 2.5 -7.5 percent target range and the need to stimulate private-sector credit.
The lower interest rates reduced the cost of borrowing for businesses and households, likely boosting loan demand and supporting net interest income for banks like Co-operative Bank.
Improved credit flows, coupled with strategic lending and branch expansion, provided a favourable environment for earnings growth despite the elevated provisions for loan losses.
Co-op Bank’s asset base grew 13.2 percent to Sh811.9 billion over the six months while customer deposits increased by 9.4 percent to Sh547.7 billion.
The Nairobi Securities Exchange-listed lender was last year added to the Morgan Stanley Capital International (MSCI) frontier markets index, in a move that will increases the stocks’ visibility to global investors. MSCI is an international firm that provides investment data and analytics services to investors.
