Cooperative bank sees its South Sudan subsidiary start making returns this year after reporting massive losses over three months after starting operation in the market last year.
The lender , Friday told shareholders replication of its local strategy of leveraging on Sacco’s will start bearing fruits as it taps for more cooperative movements through a deal it sealed with the South Sudan government last year.
“We should soon start recording profits from the subsidiary, in line with our strategy to grow shareholders wealth in coming years,” said Bank’s Group Managing Director, Gideon Muriuki.
It has so far tapped 12,000 saccos in the country with over 10 million customers and plans to achieve a similar streak in South Sudan.
The subsidiary made a loss of Sh 275 million attributed to a one off establishment costs.Speaking during the lender’s sixth annual general meeting (AGM) in Nairobi, Muriuki said the lender will also strengthen its local foothold in retail banking services to grow its customer base and boost shareholders wealth.
It will particularly lay focus on Sacco Front Office services (FOSA) through provision of wholesale financial products to deeply entrench its business in the niche market.
Target is to leverage on provision of banker’s cheques, credit schemes, M-Karo and Sacco link debit cards to execute the strategy.
The bank has so far extended wholesale financial services to over 540 FOSA outlets and their over 13 million members across the country, having issued more than 648,673 Sacco link cards.
Lenders shareholders’ funds increased by 23 percent in 2013 to Sh 36.8 Billion from Sh 29.8 Billion in 2012 after posting pre-tax profit of Sh 10.87 billion compared to Sh 9.98 billion in 2012.
Shareholders unanimously approved a bonus share issue of one share for every six shares held during the AGM.