Capital Ethiopia Newspaper

OCB nets 47.3 mln birr

Oromia Cooperative bank (OCB) made a record net profit of 47.3 million birr during the Ethiopian fiscal year 2010/11, an increase of more than 88 percent from the previous year. In 2009/10 OCB earned about 25.1 million birr. The bank had made a gross profit of 68.25 million birr.
In the 2010/11 fiscal year, OCB’s  revenue was 192 million birr, while its expenses were about 124 million birr.
According to OCB president Wondimagegn Negera, the bank also increased its total assets to 2.5 billion birr, an increase of 47 percent from the previous fiscal year, and the total deposits also reached nearly two billion birr, an increase of almost 45 percent from the previous fiscal year.
He also said that the six month performance report shows that the bank earned more than 60 million birr gross profit, already meeting by more than half OCB’s yearly target of 110 million birr pre-tax profit. OCB has about 135,000 customers currently, up from about 75,000 customers it served the same time last year.
OCB meanwhile, in the first six months of the 2011/12 Ethiopian fiscal year, has signed contracts with five money transfer agent companies including Express, Moneyexpress, and Khaa.
Wondimagegn also said the bank, which had 45 branches at the end of the last fiscal year, it now has increased its branches to 51, opening branches in Dilla, Southern Nations and Nationalities People’s Regional State (SNNPRS), in Jijiga, Somali regional state, as well as new branches in the gold mining town of Adola, Oromia regional state, and in Kolfe area of Addis Ababa which was opened just last week.
Other two branches were opened in Guliso area of western Oromia regional state and a second branch in Shashemene.
OCB has plans to open additional 15 branches this fiscal year, giving them 60 branches in total.  In the next few weeks, it is scheduled to open a branch in Holeta near Addis Ababa.
Wondimagegn further said the bank is in the pilot project stage of integrating all of its branches with the core banking solution currently being installed by an Indian firm named Infrasoft. The latter had previously conducted work for Wegagen Bank. It is also reengineering all of its branches in order to provide a one window service at the bank.
Oromia Cooperative bank was formed in March 2005 and currently has about seven thousand shareholders consisting of individuals from the private sector and 1400 primary cooperatives and unions. It also has about 271 million birr paid up capital.