Co-op Bank posts Ksh.14.1B half-year profit on strong digital lending growth

The Co-operative Bank of Kenya has posted an 8.4% jump in after-tax profit for the first half of 2025 to Ksh.14.1 billion, up from Ksh.13 billion in a similar period last year, supported by strong digital adoption, lending growth and expanded customer outreach.

Profit before tax grew 8.3% to Ksh.19.7 billion, with Return on Equity at a competitive 19.9%. Total assets rose 13.2% to Ksh.811.9 billion, while customer deposits increased 7.9% to Ksh.547.7 billion.

Net loans and advances expanded by 4.2% to Ksh.391.3 billion, while shareholders’ funds climbed 23.4% to Ksh.156.3 billion, boosted by retained earnings of Ksh.18.4 billion.

The operating income rose 10.8% to Ksh.43.5 billion, driven by a 23.1% rise in net interest income. Operating expenses increased by 13%, with the cost-to-income ratio at 44.9%—a marked improvement from 59% in 2014.

Over 90% of transactions now take place on digital and alternative channels, as the bank’s M-Co-op Cash mobile wallet disbursed Ksh.36.4 billion in loans year-to-date, Ksh.5.7 billion of which went to MSMEs.

The MSME portfolio accounts for 17.3% of the bank’s loan book, benefiting 249,319 customers, with 68,800 receiving business training.

Co-op Bank’s physical footprint grew to 212 branches after opening 15 new outlets, while subsidiaries Kingdom Bank and Co-op Bank of South Sudan also expanded. Staff numbers rose by 450 to 5,850.

Subsidiaries delivered solid results, with Co-op Trust Investment Services posting Ksh.360.8 million in PBT—up 152.8%—and funds under management hitting Ksh.461.7 billion.

Co-op Bancassurance earned Ksh.790.8 million, Kingdom Bank Ksh.491.1 million, and Kingdom Securities Ksh.63.2 million.

Group Managing Director and CEO Dr. Gideon Muriuki credited the results to the lender’s “universal banking model, robust digital presence, extensive physical network, and deep roots in Africa’s largest co-operative movement with 15 million members.”