Co-operative Bank of Kenya PLC has announced that it has posted an 8.39% increase in profit after tax to Ksh. 14.08 billion for the six months ended 30 June 2025. This is up from the Ksh. 12.99 billion the bank posted in a similar period in 2024.
Profit before tax rose 8.3% to Ksh. 19.66 billion from Ksh. 18.16 billion driven by a 23.13% rise in net interest income to to Ksh. 29.38 billion, from Ksh. 23.86 billion in H1 2024. Non-interest income contracted by 8.20% to Ksh. 14.11 billion, compared to Ksh. 15.37 billion in the previous period in 2024. The bank’s total assets expanded by 13.25% to Ksh. 811.91 billion from Ksh. 716.93 billion, driven by growth in the loan book and investments in government securities.
Co-operative Bank loans and advances to customers generated Ksh. 27.95 billion in income, up from Ksh. 25.64 billion, while income from government securities rose to Ksh. 14.47 billion from Ksh. 12.60 billion, reflecting both volume growth and higher yields. Interest expenses dropped by 3.26% to Ksh. 15.42 billion. Net loans and advances to customers increased by 4.16% to Ksh. 391.26 billion, while total customer deposits rose by 7.95% to Ksh. 547.72 billion.
Gross non-performing loans rose by 9.7% year-on-year to Ksh. 76.29 billion, from Ksh. 69.55 billion, indicating sustained strain in some borrower segments. Co-op Bank’s maintained high provisioning levels, with total loan loss reserves at Ksh. 45.21 billion, helping keep net NPL exposure negative at Ksh. 1.26 billion after accounting for collateral.
Fee and commission income on loans and advances declined to Ksh. 5.60 billion from Ksh. 6.03 billion, while other fees and commissions were largely flat at Ksh. 6.33 billion. Foreign exchange trading income dropped by 41.60% to Ksh. 1.55 billion from Ksh. 2.65 billion, indicating softer trading activity. Other income streams, including recoveries and dividend income, remained marginal contributors.
Operating expenses increased by 13.02% to Ksh. 24.04 billion, up from Ksh. 21.27 billion. Staff costs rose by 8.20% to Ksh. 9.89 billion, where depreciation and amortisation costs together exceeded Ksh. 1.94 billion. Loan loss provisions surged 50.5% to Ksh. 4.52 billion from Ksh. 3 billion, reflecting a more cautious credit risk stance amid a challenging macroeconomic environment. Despite the higher cost base, the cost-to-income ratio remained competitive due to strong interest income growth.