Kenyan Bank to open more branches in South Sudan
June 16, 2007 (NAIROBI) — The Kenya Commercial Bank will, in the next 12 months, open five new branches in Southern Sudan, as it prepares to accelerate its regional expansion, the daily Nation reported..
Releasing the news during the bank’s Annual General Meeting held at Nairobi, the chief executive, Martin Oduor-Otieno, noted that the move follows impressive performance of the two branches already reporting profit barely a year after opening.
The subsidiary was budgeted to return loss over the first three years of establishment.
“In the short time it has been operating, KCB Sudan has already established a strong foothold through its two branches in Juba and Rumbek,” he said. Its balance sheet has already hit Sh2 billion.
In its first year of operation, KCB Sudan reported a pre-tax loss of Sh34 million, due high set up cost.
The group will also be opening two new branches in Tanzania by December 2007, with a plan to open 20 branches other in the next three years.
KCB Tanzania reported a pre-tax loss of Sh35 million in 2006, but has also recorded profit in the first quarter of 2007.
Locally, the bank will be opening 35 new branches to bring its branch network to 166 branches.
“The new branches will allow the bank to take advantage of the large number of bankable rural and urban Kenyans, who do not consume any banking services and build on what we believe is a major competitive advantage for us,” said Mr Oduor-Otieno.
Teller machines
It will also increase by 32 the Automated Teller Machines to total of 147 within its network.
“At the same time, we are working on a partnership to share a platform with another ATM network provider, to increase accessibility of our services,” he added.
The group’s capital base stands at Sh11.6 billion. “…making KCB the second highest capitalised bank in East Africa,” Mr Oduor-Otieno said.
“This reflects a very strong bank, and one that is fully in compliance with all the Central Bank regulatory requirements.”
(The Nation)