KUALA LUMPUR, Aug 30 — Malaysia’s second cooperative bank, Koperasi Co-opbank Persatuan Malaysia Bhd (Co-opbank), expects interested cooperatives to subscribe for more than RM200 million Islamic Redeemable Convertible Preferred Shares (iRCPS) by next month.
Chairman, Kamari Zaman Juhari, said since its launch on July 15, the iRCPS had garnered about RM14 million from individual investors while more than RM200 million subscription by interested cooperatives were pending approvals from their respective Board of Directors.
“Once the boards have endorsed them, then the money will come in. We expect there will be a surge in capital in September,” he told Bernama before his interview with Bernama Radio for “Dalam Radar Khas” programme here today.
He said the bank was offering a total of RM300 million iRCPS for individuals and cooperatives.
Kamari Zaman said the launch of the iRCPS was for the bank to raise capital which would enable it to disburse more loans.
“We have come to a point where we have to increase our capital in order to give out loans,” he said, adding that the bank expected its retail loans to grow to RM2 billion by year-end from RM1.7 billion currently.
Meanwhile, on dividend payment, he said the bank was targeting to declare at least six per cent dividend payment this year after paying 5.5 per cent dividend last year and 3.5 per cent in 2015.
For the medium term, he said Co-opbank aimed to pay 10 per cent dividend by 2020.
Last year, the bank’s total turnover stood at RM142.5 million with profit jumping 87 per cent to RM25.8 million from RM13.8 million in 2015.
Co-opbank, which received the certificate to carry out banking activities in 2010, currently has 77,000 individual members and more than 500 cooperative members. — Bernama
Source: The Malay Mail Online