Corporate News
By Hellen Githaiga
In Summary
- Co-operative Bank has commenced operations in South Sudan with plans to roll out branches in the country’s ten states.
- The bank, which is one of Kenya’s top six in terms of size, said on Thursday that it started operations in the country last month, through a joint venture with the Government of South Sudan.
Co-operative Bank has commenced operations in South Sudan with plans to roll out branches in the country’s ten states.
The bank, which is one of Kenya’s top six in terms of size,
said on Thursday that it started operations in the country last month,
through a joint venture with the Government of South Sudan.
“We formally opened our doors at our main branch in
Juba on September 19, 2013 and will operate as the Co-operative Bank of
South Sudan,” said Gideon Muriuki, the Co-op Bank Group chief executive
in a statement.
Co-op Bank has taken a 51 per cent stake with the
government holding the remaining 49 per cent which it will transfer to
the co-operative movement in the country in a period of three years.
The Nairobi bourse-listed firm is looking to
replicate in South Sudan its model of developing business partnerships
with co-operative societies that has given it access to Kenya’s 12,000
Saccos and their 10 million customers.
South Sudan has emerged as one of the most
lucrative countries in the East African region where Kenyan banks are
expanding into to take advantage of low penetration of financial
services.
Co-op Bank joins other NSE-listed lenders –CfC Stanbic, Equity and KCB that have operations in South Sudan.
In the half year ended June, Co-op Bank retained
its position as the third most profitable lender in Kenya with its net
profit growing 17.1 per cent to Sh4.7 billion behind its home-grown
peers KCB and Equity whose net profits stood at Sh7.1 billion and Sh6.3
billion respectively.
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