Co-operative Bank’s South Sudan joint venture in which it owns 51 percent stake made a before-tax profit of Sh240.6 million, the bank’s CEO Gideon Muriuki announced on Thursday.
This performance, however, translated to a monetary loss of Sh344.7 million attributable to hyperinflation accounting occasioned by currency devaluation of the South Sudanese pound.
Mr Muriuki expects the acquisition of Jamii Bora Bank, which has over 350,000 customers in 17 branches and asset base of Sh12.5 billion, to support future growth.
“The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offering to the enhanced customer base, and create a niche bank to offer specialised credit offerings that include MSME banking, microfinance, youth and women banking, asset finance and leasing,” said Mr Muriuki.
Co-op Bank’s board of directors on March 11 approved talks to acquire 100 percent stake in the lower tier lender.