Cooperative Bank Expansion Plan: Co-operative Bank has launched a five-year strategic plan that will see it expand its footing and market size in Kenya. This is the latest of a series of strategic business development plans that have seen the bank regain its position as one of Kenya’s most formidable and profitable banks in recent years.
Co-op Bank has said in its new plan that it is yet to fully optimize its presence in Kenya. “We realised we are strong here and even as we are looking at opportunities in other countries within the region, we appreciated that (adding more branches in various parts of Kenya is of greater priority),” chief executive officer Dr. Gideon Muriuki said at the company’s annual general meeting. “We have done very well in terms of being able to deepen ourselves in market segments that we are already in.”
Co-op Bank holds virtual AGM, ratifies Sh. 5.9 billion dividend payout
The bank’s annual general meeting was held virtually. It saw the bank’s shareholders ratify its acquisition of the Jamii Bora Bank and the payment of Sh. 5.9 billion dividend. “The payment represented a timely injection of liquidity to shareholders and notably the 15 million-member Co-operative Movement to mitigate the economic ravages of the pandemic,” Co-op Bank said in a statement. Co-op Holdings Co-operative Society, the strategic shareholder with a 64.5 per cent stake received a dividend of Sh. 3.79 billion.
Addressing shareholders, Dr. Muriuki pointed out that Co-op Bank’s recent acquisition of Jamii Bora Bank is part of the ongoing local expansion, adding that the new subsidiary is expected to return to profitability from next year.
During the financial year 2019, Co-op Bank recorded improved performance that saw the bank report a profit before tax of Sh 20.7 billion. This represented a 14 per cent increase from the Sh. 18.2 billion that was posted in the financial year 2018, and against a backdrop of a challenging operating environment.