Co-operative Bank’s 1H21 net earnings rose 2.33% y/y to KES 7.37B, above our forecast of KES 6.3B, fueled by a 19.02% y/y increase in interest income, and 24.27% increase in NFI to KES 18.83B, despite a 122.97% y/y surge in loan loss provisions to KES 4.16B. Growth in NFI was mainly attributed to rising income from fees and commissions due to increased mobile lending activities.