[2008-06-30]  Co-operative Bank IPO approved
Co-operative Bank shareholders have given the final approval for the bank to raise Sh10 billion through an Initial Public Offering (IPO) at the Nairobi Stock Exchange this year.

The bank wants to recapitalise and support products diversification and financing of the branch network expansion.

Mr Gideon Muriuki, the bank’s managing director, said funds from the IPO would boost competitiveness.

The bank registered a pre-tax profit of Sh805 million for the first quarter, reflecting a 53 per cent improvement over last year.

Muriuki said the bank has a deposit base of Sh61 billion, assets worth Sh70.2 billion and more than 800,000 customers.

"The board is optimistic the bank will exceed a profit before tax of Sh3.2 billion this financial year and with Sh10 billion capital injection from the IPO, it will be amongst the most capitalised banks," he said.

He said the bank has gone through a successful business and operational restructuring over the last seven years having registered a massive loss of over 2.3 billion in 2001.

Muriuki said the bank plans to install 80 ATMs this year and has invested in key information and communication technology to enhance customer service and efficiency.

He said the bank has opened outlets at Moi Avenue and Wakulima Market, Nairobi, and in Naivasha town.

"More than 20 outlets will be opened countrywide later this year," Muriuki said in a statement.

He said subsidiaries, Co-op Consultancy Services and Co-optrust Investment Services, continued to play their role in the provision of corporate finance and fund management services.

Muriuki said Co-op Trust Investment Services Ltd has successfully increased its fund under management to Sh17.8 billion.

He said the bank has established an operational call centre that ensures it continues to provide impeccable customer service in the branch network.

"The modern 24-hour Call Centre will integrate the prevailing customer service delivery within the existing branchless banking system countrywide," Muriuki said.


Source: © 2008 Standard Group