NAIROBI, Kenya, Jul 31 – The Co-operative Bank of Kenya is set to open 5 new branches across the country, bringing its local branch count to 150 following recent openings at Jomo Kenyatta International Airport (JKIA), Two Rivers Mall and Ridgeway Branch on Kiambu Road.
This comes at a time when some of its peers, Standard Chartered Bank and Barclays Bank Kenya, have announced a freeze on expansion as well as the closure of branches in a bid to remain competitive in the tough operating environment occasioned by the implementation of the interest rate cap law.
The launch of new branches by Co-operative Bank fits the bank’s Soaring Eagle strategy that is aimed at enhanced client focus, and reaching new niche markets,
In Q1’2017, Co-op recorded a deposit growth of 6.9 percent to Sh279.8 billion from Sh261.7 billion in Q1’2016, lower than the industry average of 11.7percent.
Through this move, the bank will enhance its local presence, thus boosting deposit mobilization.
Global ratings agency Moody’s Investors Service, in their report, showed that Co-operative Bank will maintain healthy profits and strong capital buffers despite the challenging operating environment characterised by low credit growth and deteriorating asset quality.