Co-operative Bank group eyes Ethiopian and Ugandan markets

Co-operative Bank Group MD Gideon Muriuki

Nairobi, Kenya: The Co-operative Bank Group sets its eyes on expanding services to the regional markets targeting Ethiopia and Uganda.

Group MD Gideon Muriuki made the revelation during the 6th Annual General Meeting (AGM) held at the Bomas of Kenya on Friday.

“Our South Sudan subsidiary started operations in September 2013 and is expected to contribute positively to our profitability from June this year. Ethiopia and Uganda are now the new frontiers,” Muriuki said.

The AGM unanimously approved a bonus share issue of one (1) share for every six (6) shares held.

In addition, the shareholders also unanimously approved a dividend of 50 cents per share, maintaining the strong pay-out level as in the previous year 2012. This solid dividend track record has been sustained on the back of the excellent performance by the bank for the year 2013 as approved by the AGM, where the bank registered a Profit before Tax of Kshs 10.87 billion for the year compared to Kshs. 9.98 billion in 2012, a commendable growth of 9%.

The bank maintained a remarkable performance despite the challenging macroeconomic environment especially 2013 being an election year.

Other key financial highlights include:-

• Net loans increased by 15% in 2013 to Kshs.137.1 billion from Kshs.119.1 billion in 2012 mainly supported by diversified product lines and a competitive pricing mechanism.

• Customer deposits increased to Kshs.180.9 billion compared to Kshs. 163.1 billion in 2012, an impressive growth of Kshs.17.8 billion representing an 11% growth. The growth was well supported by the increased client base to over 4.1 million account holders.

• Shareholders’ funds increased by 23% in 2013 to Kshs. 36.8 Billion from Kshs. 29.8 Billion in 2012.

• Total assets stood at Kshs.231.2 billion in 2013 being an impressive growth of 15% from Kshs. 200.9 billion registered the same period in 2012.

• Net Interest income increased by 19% to Kshs.18.6 billion compared to Kshs. 15.7 billion recorded in 2012.

• Non-funded income increased to Kshs.9.3 billion in 2013 compared to Kshs.8.2 billion in 2012 representing 13% growth, mainly from fees and commissions.

The AGM elected Mr. Benedict Simiyu to join the Board of Directors, to replace Major (Rtd.) Gabriel Wakasyaka who did not offer himself for re-election.

The AGM also re-elected Messrs Stanley C. Muchiri, Mr. Julius Riungu and Mr. Wilfred Ongoro for another term of three years after Co-op holdings Co-operative Society Limited nominated them for re-election.