Co-op Bank shareholders reap Sh8.8billion in dividends
The Co-operative Bank of Kenya (Co-op Bank) has paid out a total of Sh8.8billion as dividends to its shareholders for the year ended 2023.
The colossal payout and a boom to the tier one lender investors was made following approval by shareholders in the virtual annual general meeting held last month.
The payout represents a dividend of Sh1.50 per share, after the tier-one lender maintained a consistent dividend payout on the back of sustained profitability last year.
The lender, which is listed on the Nairobi Securities Exchange, becomes the second bank after Stanbic to share its profits with its owners.
The Co-op Bank board had recommended a dividend of Sh1.5 per share, amounting to Sh8.8 billion, matching that of the previous year.
The top shareholder, Co-op Holdings Co-operative Society Limited, received Sh5.68billion on its 64.56 per cent stake.
Others are key Savings and Credit Co-operatives (Saccos) that include Harambee, H&M, Kenya Police Sacco, Afya and Masaku Teachers.
Co-op Bank posted a 5.2 per cent growth in net profit to Sh23.2billion in the financial year ended December 2023 on increased income and reduced operating costs.
The net profit grew from Sh22 billion posted in a similar period in 2022. “The strong performance has led to a sustained increase in shareholder value as reflected in the competitive return on equity of 21 percent.” Cooperative Bank Group Managing Director and Chief Executive Officer (CEO) Gideon Muriuki noted.
“The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors.” He added.
