Co-op Bank half-year profit jumps 28% to Sh18bn on subsidiaries boom
Key points
- Co-op Bank net profit for six months to 30 June rose 28 per cent to Sh18 billion from Sh14.1 billion — strongest first half on record.
- Group NPL ratio improved to 13.9 per cent from 17.2 per cent a year earlier.
- Staff headcount rose to 6,591 from 5,850 (+741); youth banking push targets 10m+ young customers medium term.
- Kingdom Bank pretax nearly doubled to Sh873m; Co-optrust pretax Sh640.5m; group assets Sh869.5bn, deposits Sh623.2bn, loans Sh462.2bn.
While peers still sweat non-performing loans, Co-operative Bank printed a record interim. Net profit for the half-year ended 30 June climbed 28 per cent to Sh18 billion from Sh14.1 billion, The Standard reported, with Group Managing Director Gideon Muriuki crediting the 2025–2029 “Good to Great” and Soaring Eagle agenda.
Asset quality tightened: the group NPL ratio fell to 13.9 per cent from 17.2 per cent. Net loans grew 18.1 per cent to Sh462.2 billion; deposits rose 11.2 per cent to Sh623.2 billion; net interest income was up 13 per cent to Sh33.2 billion; operating income hit Sh48.9 billion (+12.5 per cent). Total assets reached Sh869.5 billion and shareholders’ funds Sh171 billion. Liquidity stood at 57.3 per cent with total capital to risk-weighted assets at 22.9 per cent.
Subsidiaries did heavy lifting. Kingdom Bank pretax profit jumped 77.8 per cent to Sh873 million; Co-optrust Investment Services pretax rose 77.5 per cent to Sh640.5 million on Sh505.2 billion funds under management; bancassurance pretax was Sh812.7 million; South Sudan swung to Sh224 million pretax from Sh56.9 million. Digital and agency channels processed over 90 per cent of transactions; Co-op Kwa Jirani deposits hit Sh92.5 billion; e-credit disbursed Sh40.4 billion in the half (cumulative MCo-op Cash customers 15.6 million). Youth loans topped Sh27 billion to more than 500,000 young entrepreneurs; MSMEs were 16.5 per cent of the loan book.
Jobs and NPLs in the same press release
Adding 741 staff while cutting NPLs is the story peers will envy — if the credit cycle turns, that hiring becomes cost. Investors will watch whether subsidiary boom is durable or a one-half spike before Equity and Absa report.
Finance desk: Finance. Verified shilling figures and ratios from The Standard’s report of the bank statement.
Depositors should still read product terms; a strong half-year is not a guarantee on every savings product’s yield.
Regulators will want the NPL path to keep falling even if loan growth stays double-digit.
Based on The Standard reporting of Co-op Bank’s half-year statement. Audited full-year numbers may differ.
