CO-OP BANK REPORTS A STRONG 17.3 PERCENT GROWTH IN PROFIT TO KSH 23.1 BILLION FOR H1 2026

Co-op Bank has posted a strong profit before tax of KSh 23.1 billion for the half year ended 30 June 2026, compared to KSh 19.7 billion recorded in the same period in 2025, an impressive 17.3 per cent growth. Profit after tax grew by a strong 28.0 per cent to KSh 18.0 billion from KSh 14.1 billion in H1 2025.

This is the BEST EVER half year performance for the Group and the strong performance underscores the significant gains made under the 2025-2029 Good to Great Strategy and the “Soaring Eagle” Transformation Agenda.

Highlights of H1 2026 Performance

• Return on Average Equity stood at 22.0 per cent, reflecting sustained value creation for shareholders.

• Return on Average Assets improved to 4.3 per cent, compared to 3.7 per cent in H1 2025.

• Total Assets increased by 7.1 per cent to KSh 869.5 billion, from KSh 811.9 billion in H1 2025.

• Total Deposits grew by 11.2 per cent to KSh 623.2 billion, while net loans and advances increased by 18.1 per cent to KSh 462.2 billion.

• Government Securities grew by 7.0 per cent to KSh 271.6 billion, from KSh 253.7 billion in H1 2025.

• Borrowed funds reduced by 11.4 per cent to KSh 58.2 billion, from KSh 65.7 billion in H1 2025, reflecting continued optimisation of the Group’s funding mix.

• Shareholders’ Funds increased by 9.4 per cent to KSh 171.0 billion, supported by continued retained earnings growth and strengthening of the Group’s capital base.

• Net Interest Income increased by 13.0 per cent to KSh 33.2 billion.

• Operating income increased by 12.5 per cent to KSh 48.9 billion, driven by growth in net interest income and resilient non-funded income.

• Operating expenses increased by 9.2 per cent, with the cost-to-income ratio before provisions at 46.0 per cent.

• The Group maintained a strong liquidity and capital position, with a liquidity ratio of 57.3 per cent and total capital to total risk weighted assets at 22.9 per cent, providing a robust platform for continued lending, investment and long-term value creation.

• We continued to strengthen asset quality through proactive credit management, customer engagement and portfolio monitoring. The Group NPL ratio improved to 13.9 per cent from 17.2 per cent in H1 2025, IFRS coverage improved to 80.7 per cent from 69.9 per cent, and cost of risk improved to 1.8 per cent from 2.4 per cent.

Digital Leadership and Scale

The Group continued to strengthen its digital leadership, with over 90% of all customer transactions processed through alternative delivery channels, reflecting sustained adoption of convenient, secure and accessible banking solutions.

• The Bank’s omni-channel platform across mobile, internet and USSD continues to support seamless and efficient service delivery.
• This is complemented by an extensive distribution infrastructure comprising 16,105 Co-op Kwa Jirani agents, 609 ATMs and Cash Deposit Machines, and a 24-hour contact centre, ensuring accessibility across all customer segments.
• Agency banking continued to deepen customer reach, with deposits generated by agents increasing by 8.7% to KSh 92.5 billion, from KSh 85.1 billion in H1 2025.
• The Group maintained a strong physical presence with a network of 223 branches across Kenya, South Sudan and Kingdom Bank.
• The branch network is further complemented by 619 SACCO front offices, reinforcing the Bank’s deep integration within the co-operative ecosystem.
• Customer reach continued to expand, supported by a growing base of over 23,000 Diaspora Banking customers.
• Staff numbers increased to 6,591, reflecting continued investment in people and operational capacity, creating a total of 741 jobs since H1 2025.

MSME, E-Credit and Financial Inclusion

The Group continued to deepen financial inclusion and enterprise growth through its MSME and digital credit propositions, reinforcing its role in supporting livelihoods and economic activity across the country.

• E-Credit disbursements in H1 2026 reached KSh 40.4 billion, supporting customers with convenient and accessible credit solutions.
• Since inception, the E-Credit platform has disbursed over KSh 561.2 billion, underscoring its scale and impact in driving financial inclusion.
• Cumulative MCo-op Cash loan customers increased to 15.6 million, demonstrating continued customer adoption of the Bank’s digital credit solutions.
• The Bank continued to strengthen its MSME value proposition, with 268,604 MSMEs onboarded onto tailored MSME packages.
• In addition, 71,298 MSMEs were supported through capacity-building and training initiatives, enhancing business skills and resilience.
• MSMEs remained a key segment for the Group, accounting for 16.5% of the Bank’s loan book and 23.1% of customer deposits, reflecting strong engagement across both lending and transactional relationships.
• We enhanced merchant capabilities through an integrated payments ecosystem, enabling businesses to monitor sales, request payments and access instant Till loans for working capital needs through the CoopTill App, in addition to accepting card and mobile money payments via POS and Lipa Na M-Pesa, and transacting securely online through Chapa Pay.
• Kingdom Bank is upgrading its Core Banking System to the Finacle Core Banking system that went live in Co-op Bank Kenya & Co-op Bank South Sudan. The new core banking system will provide a modern, agile, and scalable foundation that supports Group synergy, innovation, operational efficiency, and superior customer experience.

Youth Financial Services

The Group accelerated its youth banking agenda in H1 2026, anchored on a clear mission to transform the financial lives of young people and empower them to grow, as we position ourselves to serve over 10 million youth customers in the medium term. The Youth Financial Services Division was created to reinforce our long-term commitment to building a market-leading, digitally driven youth franchise.

• By H1 2026, the Bank had disbursed over KSh 27.0 billion to youth customers, supporting over 500,000 youth in entrepreneurship and business expansion.
• We provided over 150,000 young people with access to financial literacy and empowerment programmes, supporting informed financial decision-making.
• The Customer Value Proposition provides young customers with convenient access to relevant financial solutions, including digital account opening, savings, investments, credit, financial literacy and business support.
• Powered by the Co-op Bank App, the Bank has enabled fully digital access to Money Market Fund and bond investment propositions, with over KSh 900.0 million in youth assets under management.

Performance of Subsidiaries

The Group’s subsidiaries continued to make a positive contribution to performance, reinforcing the strength of the universal banking model.

• Kingdom Bank Ltd posted Profit Before Tax of KSh 873.0 million, from KSh 491.1 million in the previous period, representing growth of 77.8 per cent, supported by continued expansion in its retail and business banking segments.
• Co-op Bancassurance Intermediary Ltd recorded Profit Before Tax of KSh 812.7 million, supported by deeper insurance penetration across the customer base.
• Co-optrust Investment Services Ltd, our fund management business, delivered strong growth with Funds Under Management of KSh 505.2 billion. Profit Before Tax grew to KSh 640.5 million, representing growth of 77.5 per cent from KSh 360.8 million in H1 2025.
• Co-op Bank of South Sudan Ltd recorded Profit Before Tax of KSh 224.0 million, compared to KSh 56.9 million in H1 2025, reflecting improved performance in the face of a dynamic operating environment.
• Kingdom Securities Ltd delivered Profit Before Tax of KSh 77.9 million, compared to KSh 63.2 million in H1 2025, representing growth of 23.3 per cent, driven by increased activity in the capital markets.

Sustainability, ESG and Impact

The Group continued to strengthen its commitment to sustainable banking and responsible growth, embedding environmental, social and governance principles across its operations and strategy.

• During the period, the Bank continued to make progress in climate risk management, with ongoing alignment to IFRS S1 and S2 and the Kenya Green Finance Taxonomy. This is supporting the integration of climate considerations into risk management, business decisions and long-term planning.
• The Bank continued to strengthen its sustainability reporting and disclosure readiness, with a focus on providing clear, useful and reliable information on long-term value creation, climate resilience and sustainability impact.
• Through the Co-op Bank Foundation, the Group continued to support access to education, with to-date 12,601 students benefiting from the scholarship programme.
• Through Co-op Bank Foundation we have supported the renovation of Kenyatta National Hospital (KNH) Orthopaedic Wards, assisting in the increase of inpatient capacity by approximately 150 beds and enhancing access to specialized healthcare services.
• The Bank also continued to strengthen the co-operative movement and enterprise ecosystem, supporting 3,960 co-operative advisory mandates as at H1 2026, covering targeted capacity-building engagements and advisory support.

Awards and Recognition

The Group’s strong performance, innovation and operational excellence continued to receive recognition across key regional and global platforms.

• The Bank was recognised as Kenya’s Best Retail Bank and Kenya’s Best Digital Bank at the Euromoney Awards for Excellence 2026.
• Global Finance named Co-op Bank the Best Bank in Kenya 2026, reflecting the Bank’s continued leadership in digital transformation, customer-led innovation, impactful financial solutions and sustained value creation.
• The Bank was named SME Bank of the Year 2026 at the African Banker Awards, reinforcing its leadership in supporting enterprise growth and financial inclusion.
• The Bank was ranked among Africa’s Fastest Growing Companies 2026 by Statista.
• The Bank was also named Digital Banking Inclusion Leader – East Africa by CFI, and Best Commercial Bank of the Year – Kenya at the International Banker 2026 Africa & North Africa Banking Awards.

Conclusion

Co-operative Bank Group remains steadfast in advancing its strategic priorities, firmly grounded in resilience and growth across diverse economic sectors. Our success is driven by:

• Distinctive customer experience – ‘The Co-op Bank Way’: Delivering exceptional experiences through a deeply embedded, consistent customer-centric culture across all touchpoints.
• A universal banking model that balances comprehensive service offerings with operational agility.
• A robust digital presence that ensures seamless accessibility, supported by an industry-leading omni-channel platform.
• An extensive physical footprint comprising a countrywide branch network, ATMs and agency outlets, fortifying our reach across all regions of the country.
• A deep and growing customer base currently standing at over 10 million account-holders.

The unique advantages of being rooted in the largest co-operative movement in Africa—boasting 15 million members—which underscores our unique synergies and deep community integration.