Co-op Bank’s Profits Soar to Sh14.1 Billion

Co-operative Bank of Kenya has reported a robust after-tax profit of Sh14.1 billion for the first half of 2025, marking an impressive 8.4 percent rise from Sh13 billion in the same period last year.

The growth is attributed to a strong surge in both interest and non-interest income, with operating income climbing 10.8 percent to Sh43.5 billion, bolstered by a 23.1 percent jump in net interest income to Sh44.8 billion.

Chief Executive Officer Gideon Muriuki highlighted the bank’s strategic focus on sustainable growth, resilience, and agility as key drivers of this success, elevating the return on equity to 19.9 percent.

The bank, majority-owned by the 15-million-member co-operative movement through Co-op Holdings Co-operative Society Limited with a 64.56 percent stake, has also expanded its footprint by opening 15 new branches in Kenya, bringing the total to 212.

Despite a challenging economic environment, the bank increased loan-loss provisions by 50 percent to Sh4.5 billion and saw operating expenses rise 13 percent to Sh24 billion, driven by higher staff costs and the addition of 450 employees, bringing the workforce to 5,850.

Subsidiaries also contributed significantly, with Co-op Trust Investment Services reporting a 152.8 percent profit surge to Sh360.8 million and funds under management growing to Sh461.7 billion.

The supportive monetary policy from the Central Bank of Kenya, which lowered the benchmark lending rate to 9.50 percent in August, further aided the bank’s performance by reducing borrowing costs and boosting loan demand.

With assets growing 13.2 percent to Sh811.9 billion and customer deposits up 9.4 percent to Sh547.7 billion, Co-op Bank continues to solidify its position as a leading financial institution in the region.