The Co-operative Bank of Kenya has announced a KSh 14.1 billion net profit for the first half of 2025, representing an 8.4 percent increase from the KSh 13 billion recorded in the same period last year. Profit before tax rose to KSh 19.7 billion, up 8.3 percent, driven by strong digital adoption, increased lending to micro, small and medium enterprises (MSMEs), and disciplined cost management.
The Group’s shareholders’ funds rose 23.4 percent to KSh 156.3 billion, supported by retained earnings of KSh 18.4 billion. The return on equity stood at an impressive 19.9 percent, underscoring the bank’s ability to generate strong returns for investors.
Balance Sheet Expansion
Total assets expanded by 13.2 percent to reach KSh 811.9 billion in the first six months of the year. Customer deposits climbed 7.9 percent to KSh 547.7 billion, reflecting increased customer confidence and loyalty. Net loans and advances to customers increased 4.2 percent to KSh 391.3 billion as the bank continued to support lending across key economic sectors.
Operating income rose 10.8 percent to KSh 43.5 billion, buoyed by a 23 percent increase in net interest income. While operating expenses grew by 13 percent, the Group maintained a strong cost-to-income ratio of 44.9 percent, a significant improvement from 59 percent in 2014.
Digital and MSME Focus
Digital banking remains the cornerstone of Co-op Bank’s service delivery, with 90 percent of transactions conducted outside physical branches through mobile banking, internet banking, USSD channels, and an extensive agency network. The bank operates 622 ATMs/CDMs and works with over 16,000 Co-op Kwa Jirani agents across the country.
The M-Co-op Cash mobile wallet disbursed KSh 36.4 billion in loans during the period, of which KSh 5.7 billion went to MSMEs. The MSME loan book now accounts for 17.3 percent of the bank’s portfolio, serving over 249,000 customers. In addition, 68,800 MSMEs benefited from training and capacity-building programs aimed at improving business sustainability and growth.
Subsidiary Performance
Co-op Trust Investment Services Ltd posted a gross profit of KSh 360.8 million, representing a 152.8 percent increase, with funds under management hitting KSh 461.7 billion. Co-op Bancassurance Intermediary Ltd reported a gross profit of KSh 90.8 million, while the bank’s South Sudan operation recorded a restated profit of KSh 56.9 million after adjustments for hyperinflation.
Dividend Outlook
While the bank’s half-year results did not include an interim dividend declaration, the Group earlier this year paid a final dividend of KSh 1.50 per share for the 2024 financial year, amounting to a substantial payout to shareholders in June.
