Economy
Despite 50% Stake in Coopbank, Cooperatives Get Under 10% of Lending
BirrMetrics · 13 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
Although cooperatives hold over half the shares in Cooperative Bank of Oromia, borrowers classified as cooperatives accounted for less than a tenth of its disclosed loan book as of June 2026.
- Primary cooperatives, cooperative unions, and federations hold approximately 51.9 percent of Cooperative Bank of Oromia's shares.
- Outstanding lending to borrowers classified as cooperatives stood at 14.11 billion birr, representing 9.5 percent of the approximately 148 billion birr portfolio.
- Private borrowers accounted for 132.34 billion birr, or 89.4 percent of the disclosed loan book.
- Public enterprises owed the remaining 1.55 billion birr.
- Outstanding borrowing by cooperatives rose by 43.6 percent, growing faster than the 25.2 percent expansion of the wider portfolio.
- Domestic trade and services reached 49.86 billion birr, making up 33.7 percent of the gross portfolio and leading loan-book growth.
- Combined conventional and Murabaha agricultural lending slipped by 1.3 percent to 9.46 billion birr, representing about 6.4 percent of the gross book.
- Loans to influential individual shareholders reached 2.68 billion birr, while cooperative unions in related-party disclosures owed 2.48 billion birr.
- Key management personnel received loans totaling 293.4 million birr at preferential rates ranging from zero to 9.5 percent.
- The digital lending platform Michu has cumulatively disbursed over 59.45 billion birr to underserved individuals and micro-enterprises across more than 3.17 million loan accounts.
- Annual loan-impairment charges rose to 1.82 billion birr, with domestic trade and services accounting for 76.7 percent of the total.
- Stage 3 credit-impaired exposures increased from 6.68 billion birr to 11.69 billion birr, rising from 5.6 percent to 7.9 percent of the gross portfolio.
- Conventional and interest-free customer deposits increased by 10 percent to 191.44 billion birr.
- Pretax profit reached 8.11 billion birr, up from 1.98 billion birr previously, bolstered by a foreign-exchange gain of 3.00 billion birr.
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