CBO grosses 602 mln birr profit

The Cooperative Bank of Oromia (CBO), which recently received an Excellence and Leadership Award from Global Trade Leaders, ended the 2014/15 fiscal year with a 602 million birr gross profit. This year’s profit has grown by 126 million birr compared to the 2013/14 profit of 476 million birr.

According to the bank’s pre-audit data, the paid-up capital jumped from 632 million birr to 864 million birr while its total assets grew by 3.2 billion birr, reaching 11.6 billion birr.

Deposit has reached 7.3 billion birr, up by 2.1 billion birr from the previous year. The bank opened 35 new branches, raising the total number of its branches to 141 and currently has the capacity to serve 450,000 customers.

Earnings per share (100 birr share value) stand at 56 birr, decreasing by four birr from 2012/13 per share earnings.

The bank has outstanding loans amounting to 6 billion birr, increasing by 2.6 billion birr from the preceding year.

Wondimagegnehu Negera, President of CBO, told Capital that the strategy the bank had adopted after monitoring macroeconomic trends was vital to increasing profit.

“Working with many farmers helped to sustain our performance, and understanding the whole spectrum of the country’s macro economy greatly helped us to perform better. We have a strong management and industrious workers who always work passionately to push CBO one step ahead by increasing customer growth and satisfaction. This commitment helps us improve our performance each year,” Wondimagegnehu said.

Wondimagegnehu said the ATM assisted payment service and the bank’s new interest-free service will further facilitate the service and attract more customers.

“We will promote and expand ATM services to reach more customers. In addition, we have planned to launch several services that encourage young adults, women and the youth in particular to save more,” he added.

Wondimagegnehu also applauded Prime Minister Hailemariam Desalegn’s stance not to open the banking sector to foreign investors in the near future.

“Although private banks have had a positive impact on Ethiopia’s economy, there are many things they have to improve to compete with foreign banks. They have to raise their capital, assets and customer base, and have to start using modern technologies to provide fast service. If foreign banks are allowed to enter Ethiopia now, they will undermine fragile local banks, which have been growing over the past decade, ’’ he explained.

 

Cooperative Bank of Oromia was established on October 29, 2004 with an authorized capital of 300 million birr. It started operation on March 8, 2005 with a paid-up capital of 112 million birrn

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