Co-operative Bank of Kenya has reported a strong financial performance for the first half of the year, with its net profit rising by 8.39% to Ksh. 14.08 billion, up from Ksh. 12.99 billion posted during a similar period in 2024.
The growth in profitability is attributed to improved income from core banking operations, increased customer deposits, and prudent cost management amid a challenging economic environment marked by inflationary pressures and high interest rates.
In its financial results released on Monday, the bank revealed that total operating income grew to Ksh. 37.2 billion, a 6.8% increase compared to Ksh. 34.8 billion recorded in the same period last year. The rise was driven by growth in both interest and non-interest income.
Interest income increased by 9.2% to Ksh. 28.4 billion, largely supported by an expanded loan book and higher yields from government securities. Non-interest income, including fees and commissions, also saw a modest rise of 3.4% to Ksh. 8.8 billion.
On the expenses side, total operating expenses rose slightly to Ksh. 21.6 billion, up from Ksh. 20.9 billion, reflecting increased investment in digital banking infrastructure and customer service enhancements.
The bank’s asset base also saw steady growth, with total assets rising to Ksh. 686.5 billion, a 5.1% increase from Ksh. 653.4 billion in June 2024. Customer deposits surged by 6.7% to hit Ksh. 528.9 billion, highlighting sustained customer confidence in the institution.
Group Managing Director and CEO Gideon Muriuki credited the performance to continued support from customers and the resilience of the bank’s diversified business model.
“We remain committed to delivering value to our shareholders and customers through sustainable growth and innovation, especially in the face of macroeconomic uncertainties,” Muriuki said in a statement.
The bank also noted that its digital banking channels continue to play a pivotal role in driving growth, with over 90% of customer transactions now being conducted via mobile and internet platforms.
Analysts view Co-operative Bank’s performance as a positive sign of stability in Kenya’s banking sector, which continues to navigate regulatory changes, global economic shifts, and evolving customer expectations.
Co-operative Bank is expected to maintain its upward trajectory in the second half of the year, barring any major economic shocks, and remains a key player in Kenya’s financial services landscape.
