Listed lender Co-operative Bank of Kenya PLC has posted an 8.39% increase in profit after tax to KShs 14.08 billion for the six months ended 30 June 2025, up from KShs 12.99 billion a year earlier.
- •Profit before tax rose 8.3% to KShs 19.66 billion from KShs 18.16 billion driven by a 23.13% rise in net interest income to to KShs 29.38 billion, from KShs 23.86 billion in H1 2024.
- •Non-interest income contracted by 8.20% to KShs 14.11 billion, compared to KShs 15.37 billion in the prior period.
- •The lender’s total assets expanded by 13.25% to KShs 811.91 billion from KShs 716.93 billion, driven by growth in the loan book and investments in government securities.
Loans and advances to customers generated KShs 27.95 billion, up from KShs 25.64 billion, while income from government securities rose to KShs 14.47 billion from KShs 12.60 billion, reflecting both volume growth and higher yields. Interest expenses dropped by 3.26% to KShs 15.42 billion.
Net loans and advances to customers increased by 4.16% to KShs 391.26 billion, while total customer deposits rose by 7.95% to KShs 547.72 billion.
Gross non-performing loans rose by 9.7% year-on-year to KShs 76.29 billion, from KShs 69.55 billion, indicating sustained strain in some borrower segments. Co-op Bank’s maintained high provisioning levels, with total loan loss reserves at KShs 45.21 billion, helping keep net NPL exposure negative at KShs 1.26 billion after accounting for collateral.
Weakness in Non-Interest Income
Fee and commission income on loans and advances declined to KShs 5.60 billion from KShs 6.03 billion, while other fees and commissions were largely flat at KShs 6.33 billion. Foreign exchange trading income dropped by 41.60% to KShs 1.55 billion from KShs 2.65 billion, indicating softer trading activity. Other income streams, including recoveries and dividend income, remained marginal contributors.
Operating Costs and Provisions Rise
Operating expenses increased by 13.02% to KShs 24.04 billion, up from KShs 21.27 billion. Staff costs rose by 8.20% to KShs 9.89 billion, where depreciation and amortisation costs together exceeded KShs 1.94 billion. Loan loss provisions surged 50.5% to KShs 4.52 billion from 3.00 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.
Key Highlights- Co-op Bank’s H1 2025 vs H1 2024
| Metric | June 30, 2025 | June 30, 2024 | YoY Change |
| Net Interest Income | KShs 29.38 Billion | KShs 23.86 Billion | 23.13% |
| Non- Interest Income | KShs 14.11 Billion | KShs 15.37 Billion | -8.20% |
| Operating Expenses | KShs 24.04 Billion | KShs 21.27 Billion | 13.02% |
| Operating Income | KShs 43.49 Billion | KShs 39.23 Billion | 10.86% |
| Profit Before Tax (PBT) | KShs 19.66 Billion | KShs 18.16 Billion | 8.26% |
| Profit After Tax (PAT) | KShs 14.08 Billion | KShs 12.99 Billion | 8.39% |
| Total Assets | KShs 811.91 Billion | KShs 716.93 Billion | 13.25% |
| Total Equity | KShs 156.33 Billion | KShs 126.70 Billion | 23.39% |
| Customer Deposits | KShs 547.72 Billion | KShs 507.39 Billion | 7.95% |
| Loans & Advances (Net) | KShs 391.26 Billion | KShs 375.63 Billion | 4.16% |
| Gross NPLs | KShs 76.29 Billion | KShs 69.55 Billion | 9.69% |
| Earnings per Share (EPS) | KShs 2.41 | KShs 2.21 | 9.05% |
Outlook
Co-op Bank’s core capital to total risk-weighted assets ratio stood at 18.8%, and the total capital adequacy ratio at 21.3%. Liquidity remained robust at 66.7%, more than triple the 20% regulatory requirement,
Earnings per share improved to KShs 2.41 from KShs 2.21 a year earlier, reflecting profitability growth and balance sheet expansion. The lender is likely to focus on sustaining momentum in net interest income, diversifying fee-based revenue streams, and maintaining disciplined cost control in the second half of 2025. Continued vigilance on asset quality will be key, particularly if economic conditions remain challenging.
