Consolidated Bank of Kenya recorded a sharp rise in profitability in the first half of 2026, with net profit increasing more than 13-fold on the back of higher interest and non-interest income.
The bank’s profit after tax rose by 1,349.5 percent to Sh174.83 million in the six months ended June 30, 2026, up from the corresponding period a year earlier.
The strong performance was supported by growth in both lending income and fees and commissions, pointing to improved revenue generation during the period.
Net interest income increased by 33.9 percent to Sh738.15 million, while non-interest income rose by 17.6 percent to Sh331.55 million.
As a result, the bank’s total operating income increased by 28.3 percent to Sh1.07 billion, according to its half-year financial statements.
The lender also expanded its loan book during the period, with net loans and advances rising by 4.3 percent to Sh8.44 billion.
Customer deposits recorded stronger growth, increasing by 13 percent to Sh13.57 billion, providing the bank with a larger pool of funds to support lending and other operations.
However, the bank continued to face pressure from non-performing loans.
Gross non-performing loans increased by 12.5 percent to Sh4.27 billion, highlighting continued asset quality challenges despite the improvement in overall profitability.
Loan loss provisions also increased by 23.5 percent to Sh199.85 million as the bank set aside more funds to cushion itself against potential losses from troubled loans.
The growth in income and deposits nevertheless supported an expansion of the bank’s balance sheet.
Total assets increased by 14.4 percent to Sh21.05 billion during the six-month period.
The results come as Consolidated Bank continues efforts to strengthen its financial position and grow its business in Kenya’s competitive banking sector.
The bank is majority-owned by the Kenyan Government, with the State holding a 93.4 percent stake through the National Treasury and government agencies, including the Deposit Protection Fund.
The remaining shares are held by 25 government parastatals.
The strong half-year profit marks a significant improvement from the bank’s performance in the previous comparable period and could strengthen its capacity to expand lending while supporting efforts to improve its balance sheet.
However, the increase in non-performing loans remains an area to watch as the lender seeks to sustain profitability while managing credit risks.
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