Co-operative Bank Managing Director, Doctor Gideon Muriuki, was named the best Chief Executive Officer in the banking industry in Africa.
He was feted for paying dividends and retaining workers despite the adverse effects of the Covid-19 pandemic.
In March this year, the bank announced that its shareholders will be paid Sh5.86 billion dividend after it retained the payout despite full-year net profit declining by 24.4 per cent on increased provisions for loan defaults.
“The group has taken loan loss provisions of Sh8.5 billion in appreciation of the challenges that businesses and households are grappling with from the disruptions occasioned by the ongoing pandemic,” said Muriuki.
The bank restructured loans worth Sh49 billion or 17 per cent of total loan book during the review period to support customers.
Muriuki was also feted for his efforts including, turning around Co-operative Bank from a loss-making lender into a profitable one.
Additionally, the Co-op Bank Group chief was recognised for implementing key strategies to address challenges facing both businesses and households.
“Muriuki was recognised for the decision to sustain the payment of dividends to shareholders despite Covid-19, which offered critical relief and support to the over 15 million-member Cooperative movement,” stated Europe, Middle East, Africa (EMEA) Finance.
Unlike other large banks, Co-op Bank stood out for maintaining dividend payouts, hiring more employees, paying them more and expanding in the midst of the pandemic through its acquisition of Jamii Bora, which it renamed Kingdom Bank.
In 2020, the group acquired 90 per cent stake in Kingdom Bank with over 444,000 customers in 17 branches.
The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offering to the enhanced customer base.
This made Muriuki earn Sh260.3 million in bonus last year, the largest in the banking industry, under the bank’s performance-based reward system for staff in July this year.
Muriuki was part of the bank’s staff whose salary and bonuses rose to Sh13.4 billion in the review period from Sh12.4 billion a year earlier.
