Business / News
Monday, 30 May 2016 08:59 EATnewsdesk@kenyafreepress.com
The Co-operative Bank of Kenya plans to enter into Rwanda, Ethiopia and Tanzania through the same model it used to South Sudan.
The bank wants to establish branches in those markets using the same strategy it adopted in South Sudan since going there in 2016.
Speaking during the Annual General Meeting in which the delegates approved a dividend of Sh0.8, Co-op Bank CEO/Managing Director Dr Gideon Muriuki, said that they will use the same strategy to enter those countries.
“The future of the group is promising on account of the growth strategies we have put in place, including the full execution of the “Soaring Eagle” transformation agenda,” he said.
Muriuki said the group is still exploring on which among the four countries to go first. “We are still exploring where to launch first, but Ethiopia could be the first one,” he said.
He said Ethiopia is still virgin as not many banks operate in the country and going there may prove lucrative just the same way South Sudan did.
Co-op Bank entered into South Sudan through joint venture partnership – where it allowed the South Sudan Government to have 49 per cent of the company shares, while it retained 51 per cent.
The South Sudan branch business made a positive contribution to the group with a profit before tax of Sh850 million despite the difficult trading environment.
He said the excellent performance by the group is on the back of gains from the bold ‘Soaring Eagle,” transformation project that the bank started implementing from 2014 to improve operational efficiencies, reduced operating costs and improve customer delivery platforms.
Muriuki said the future of the bank is promising adding that the bank will continue to re-engineer its reporting and analytics by investing in enhanced financial management tools such as MIS, ERP and CRM.
In its 2015, annual financial results, the bank profit before tax stood at Sh15.38 billion as compared to Sh10.92 billion recorded in a similar period in 2014. The profit after tax during the same period stood at Sh11.7 billion compared to Sh8.01 billion in 2014.
The AGM re-elected Mesrs Macloud Malonza, Richard Kimanthi and Benedict Simiyu for another terms of three years after the majority and strategic shareholder Co-op Holding Society Ltd nominated them for re-elections.
Jack is a business and society writer at the Kenya Free Press