Cooperative Bank of Oromia Financial Performance and Growth

The Cooperative Bank of Oromia has experienced significant growth in recent years, with a total asset value of ETB 25 billion as of 2020. This growth is a testament to the bank's commitment to serving the financial needs of its customers.

The bank's total deposits have also seen a substantial increase, reaching ETB 18 billion in 2020. This increase in deposits has enabled the bank to expand its lending activities and support the economic growth of the region.

One of the key factors contributing to the bank's growth is its strong presence in the Oromia region, with a network of 120 branches and over 1,000 employees.

Intriguing read: Oromia International Bank

The Cooperative Bank of Oromia is a leading financial institution in Ethiopia.

It was founded in 1997 by the Oromia Regional Government to provide financial services to the people of Oromia.

The bank's primary goal is to promote economic development and improve the standard of living in the region.

For another approach, see: Op Financial Group

With its headquarters in Addis Ababa, the bank has a strong presence in the Oromia region.

The bank's mission is to provide excellent financial services to its customers and contribute to the economic growth of the region.

It has a wide range of products and services, including deposit accounts, loans, and other financial services.

The bank has a strong commitment to community development and has implemented various social and economic projects in the region.

These projects aim to improve the livelihoods of the people in Oromia and contribute to the region's economic development.

Recommended read: Banks and Banking Services

Cooperative Bank of Oromia has reported impressive financial results over the years. The bank's paid up capital has reached 4.6 billion birr, making it one of the top capitalized banks in Ethiopia.

The bank's highest profit to date was 1.5 billion birr before tax, achieved during the 2021/2020 fiscal year. This significant increase in profit highlights the bank's growth and stability.

In contrast, the bank's net profit after tax was 657 million birr, which is a notable achievement, especially considering the financial challenges the bank faced in the past.

For more insights, see: Bank Tax

The 2021 revenue for Cooperative Bank of Oromia was a remarkable 5.7 billion birr, a 57% increase from the previous year.

This significant jump in revenue is a testament to the bank's ability to adapt and grow in a competitive market.

The bank's paid up capital has reached 4.6 billion birr, making it one of the top capitalized banks in Ethiopia.

Cooperative Bank of Oromia has reported a gross profit of 2.39 billion birr for the 2021/2020 fiscal year.

As we explore the financial performance of various banks, it's essential to consider the exchange rates they offer. The Cooperative Bank of Oromia has a notable exchange rate for USD, which is 124.70 for buying and 127.20 for selling.

The difference between the buying and selling rates is quite significant, at ± 2.49. This means that if you exchange $100, you'll get 12,470 Birr for buying and 12,720 Birr for selling.

Here's a breakdown of the exchange rates for various currencies:

These rates are subject to change, so it's always a good idea to check the latest exchange rates before making any transactions.

Related reading: Local Credit Unions Mortgage Rates

The Cooperative Bank of Oromia offers a range of services that cater to its customers' needs. You can check your balance, transfer money, view your account statement, control your progress, and even pay bills online.

The bank's mobile application allows you to perform various tasks, including balance inquiry, mobile top-up, and money transfer. This makes it convenient for customers to manage their accounts on-the-go.

The bank offers different types of savings accounts with varying interest rates, including Personal Saving, Women Saving, Youth Saving, Teen Saving, and Education Saving. The interest rates for these accounts range from 7% to 8%.

Here's a breakdown of the interest rates for each type of savings account:

The bank also offers loans and deposit accounts, including automobile loan, mortgage loan, working capital loan, consumer loan, and optional diaspora deposit accounts.

A different take: Armed Forces and Police Savings & Loan Association, Inc.

Cooperative Bank of Oromia offers a range of loan options specifically designed for diaspora customers.

You can choose from various loan types, including a contract of promise to sell and purchase a commodity, machinery, or vehicle on a pre-agreed profit added to the cost.

Related reading: Credit Union Personal Loan Application

Cooperative Bank of Oromia also provides financing for property leases, acting as the seller to supply goods in return for an advanced price.

In addition, the bank offers construction and manufacturing services, managing projects such as power stations, house construction, roads, and plants according to specifications.

To be eligible for these loans, you'll need to have a valid residence and/or work permit, as well as a renewed passport for non-resident Ethiopians or a renewed passport and yellow card for foreigners of Ethiopian origin.

The bank's diaspora business loans come with various benefits, including easy access to credit facilities and third-party payment management.

Here are some of the loan options available:

Cooperative Bank of Oromia offers a savings account for diaspora with a better interest rate, allowing deposits in both local and foreign currency.

This account comes with a special personal banker who provides advisory services and can be used as collateral for personal loans and advances.

Related reading: Credit Union Checking Account

The bank also offers a customer's account with unlimited withdrawal numbers, making it convenient for travelers to Mecca and Medina who need to access their funds upon request.

Here are the different types of accounts provided by Cooperative Bank of Oromia:

At our bank, we offer a range of services to help you manage your accounts and savings.

We provide online banking services that allow you to check your account balances, view transaction history, and transfer funds 24/7.

You can also use our mobile banking app to make payments, deposit checks, and find ATMs near you.

Our customer service team is available to assist you with any questions or issues you may have.

We offer a variety of account types, including checking, savings, and money market accounts.

Our money market accounts earn a competitive interest rate, with rates starting at 2.5% APY.

You can also set up automatic transfers from your checking account to your savings account to help you save money.

Our bank is a member of the FDIC, which insures your deposits up to $250,000.

Additional reading: In a Fractional Reserve Banking System Banks Create Money Because

With Cooperative Bank of Oromia, you can deposit money with unlimited withdrawal numbers, giving you the flexibility you need.

This type of account is particularly useful for those planning to travel to Mecca & Medina for Hajji or Umrah, as the deposited amount can be availed at your request.

There are several types of customer accounts offered by Cooperative Bank of Oromia, including a safekeeping account operated by cheque, where you can deposit money to be safely kept within the bank.

A customer's account can also be used to deposit money into a project of your choice, in which case you'll receive a shared percentage or portion of the lost capital.

The bank's general pool of Shariah Law Banking services and activities allows customers to deposit money, which is then invested, and you'll receive a shared percentage or portion of the lost capital.

Here are the different types of customer accounts offered by Cooperative Bank of Oromia:

Some accounts are designed to be interest-free, which means you won't be charged interest on your balance.

This can be a great option for people who struggle to pay off their balance in full each month, as it can help avoid interest charges that can add up quickly.

With an interest-free account, you can focus on paying off the principal amount without worrying about interest being added on top.

This can make it easier to manage your finances and avoid debt.

Interest-free accounts often come with a 0% interest rate, but be aware that this rate may not last forever.

Some accounts may revert to a standard interest rate after a promotional period, so it's essential to read the terms and conditions carefully.

If you're considering an interest-free account, make sure to review the fees associated with it, as some may have charges for things like overdrafts or withdrawals.

Suggestion: Credit Union Free Checking Account

Cooperative Bank of Oromia offers various financing options for projects, including investment financing. The bank finances up to 80% of a project, with the remaining 20% to be covered by the promoter's own equity.

To borrow from Cooperative Bank of Oromia, you'll need to provide several documents, including legal documents, an approved construction plan, project proposal, investment license, memorandum & article of association, landholding certificate/lease agreement, and TIN.

The bank also provides working capital loans, which can be accessed by Diaspora businesses operating within Ethiopia.

Investment financing is a crucial aspect of any business, and there are several options available in Ethiopia. The Cooperative Bank of Oromia offers investment financing for projects submitted by Diaspora, requiring not more than 80% financing from the bank and 20% from the promoter's own equity.

To qualify for investment financing, you'll need to provide several documents, including legal documents, an approved construction plan, project proposal, investment license, memorandum and article of association, landholding certificate/lease agreement, and TIN.

The Cooperative Bank of Oromia also offers working capital loans to businesses within Ethiopia, which can be applied for by providing documents such as tax clearance, business license, financial statements/financial plan, and TIN.

Diaspora businesses can also access working capital loans for various purposes, including mechanization, beekeeping, dairy farming, and agro-processing. These loans can be secured with collateral, and the bank will require documents related to the collateral.

Zemen Bank is another option for investment financing, although specific details are not provided in the article. However, it's clear that there are several options available for businesses looking to access investment financing in Ethiopia.

Curious to learn more? Check out: How Do Investment Banks Differ from Commercial Banks

Cooperative Bank of Oromia and FMO have signed a USD 10 million NASIRA loan portfolio guarantee, enabling Coopbank to expand its funding to underserved MSMEs.

The NASIRA guarantee will cover potential credit losses on the underlying portfolio, encouraging Coopbank to lend to clients that are typically perceived as risky, such as micro and small entrepreneurs.

Coopbank is one of the largest banks in Ethiopia, with over 756 branches and 13.3 million customers across the country.

The bank has a strong focus on serving MSMEs and the agriculture sector, employing 90 agronomists to provide capacity-building and advisory support to its clients.

This partnership with FMO marks a new chapter in the Ethiopian banking landscape and will significantly boost Coopbank's efforts to provide credit to underserved MSMEs.

The NASIRA guarantee is funded by the European Commission and is part of FMO's innovative programs to encourage local banks to extend their funding to small entrepreneurs.

The guarantee will target a client group that is typically underserved by banks, including women and young people, with only 6 percent of Ethiopia's 1.5 million MSMEs having access to finance according to the UNDP.

The Cooperative Bank of Oromia offers a variety of services through its mobile application. You can access your account information and perform transactions on the go.

You can check your account balance, transfer money, and view your account statement through the mobile application. The bank also offers a USSD application for those who prefer to use their phone's keypad.

The mobile application allows you to top up your mobile phone and transfer money to others. This is a convenient way to manage your finances and stay connected.

The Cooperative Bank of Oromia offers different interest rates on its savings accounts. Here's a breakdown of the rates:

These interest rates are competitive and can help you grow your savings over time.