Cooperative Bank of Oromia (CBO) S.C reported a 139.8 million birr gross profit, 105 percent up from last year’s performance or 71.5 million birr.
Its profit after tax stood at 102 million birr while the earning per share in the reported period has shown growth by 55 percent from the previous year.
At the 8th Regular General Assembly the bank held on Dec. 22, 2012 at Gelma Abbaa Geda Hall in Adama, the bank said it has generated a total income of birr 304 million as of June, 2012.
The income earned from interest takes the lion’s share of 56 percent being 172 million birr. Incomes from commission, foreign currency fluctuation, and others are 87.5, 42.2 and 2.2, respectively.
The earnings per share of the bank for the fiscal year under review has grown from last year figure of birr 29 to birr 45 for an invested 100 birr. CBO has announced a dividend payment of 33.6 percent for the reporting period.
The bank has transferred 25.5 million birr to legal reserve.
The total asset of the bank as of June 30, 2012 reached birr 3.7 billion increasing by 47 percent or 1.2 billion birr from last year same period balance of birr 2.2 billion. The total capital of the bank which comprises, share capital, share premium, donated capital, legal reserve and retained earning stood at 417.2 million showing a 171.4 million birr increase from the previous period.
The General Assembly has also decided to raise the bank’s capital to 800 million birr. Its paid up capital now has reached 330 million birr as of last week, according to the president.
The bank has automated all branches and has purchased necessary materials for the core banking and other related services, according to the report. CBO has paid about 30 million birr for IBM’s Core Banking Service (CBS). The core banking service is on a pilot project and will be fully operational at the end of this fiscal year, according to Wondimagegnehu Negera, President of the bank. The bank is also establishing business process reengineering (BPR) which makes it the sole private bank, according to the president.
CBO has 67 branches and will be opening additional 16 branches in the near future.
The bank, which was established in October 2004 with an authorized capital of 300 million birr and a paid up capital of 112 million birr, aspires to construct its headquarter around the area commonly known as Senga Terra on a 5,000 square meter plot it acquired from the Addis Ababa City Administration a couple of years ago. “We also will construct branches in other parts of the country in accordance with the bank’s liquidity,” the president said.
The general assembly also nominated 11 members of the board of directors who are going to be screened by the National Bank of Ethiopia (NBE) for approval.