Co-op bank to pay Sh6b dividends to shareholders
Zachary Ochuodho @zachuodho
Co-operative Bank Group has notified its members that it will pay Sh5.9 billion in dividends on April 23, should the shareholders approve the payment.
A statement, issued by Coop Bank group company secretary Samuel Kibugi, said the board of directors had approved and recommended the payment of a first and final dividend of Sh1 per share.
Kibugi said the release of the dividend will be crucial to shore up member financial standing by providing an estimated Sh15 million to those in the grassroots. Only shareholders registered by April 15 will be paid.
According to its 2019 financial report, Co-op Holdings Coop Society Ltd owned 64.56 per cent of the group while minority shareholders controlled 35.4 per cent.
The bank, Kibugi said, will bring up the dividend payment for ratification at the next annual general meeting.
Net profit
“In this regard we hereby give notice that the dividend shall be paid on or about Thursday, April 23 to shareholders on the register,” said Kibugi.
The group reported an after-tax profit of Sh14.3 billion compared to Sh12.7 billion in the previous year – which was a 12.6 per cent rise.
It posted a profit before tax of Sh20.7 billion in 2019 compared to Sh18.2 billion the previous year.
Coop Bank Group chief executive Gideon Muriuki attributed the good performance to the “Soaring Eagle” transformation agenda that has re-tooled and equipped the business with added competitive edge as reflected in the sustained growth in market share across all market segments.
Muriuki said the financial inclusion model is rooted in the more than 15 million-member co-operative movement that is the face of Kenya.
“The Group has continued with a strategy of “increased dominance” in the domain market segment (Kenya) leveraging on our successful penetration of retail and consumer banking, micro, medium and small enterprises, corporate banking and the co-operative movement,” he said.
On March 11, the board of directors approved the progression of discussions with Jamii Bora Bank Ltd, for acquisition of 100 per cent share.
Asset base
Jamii Bora Bank is a Kenyan bank incorporated under the Companies Act with more than 350,000 customers in 17 branches and an asset base of Sh12.5 billion.
The acquisition offers Co-op Bank the opportunity to cross-sell and deepen product offering to the enhanced customer base and create a niche bank to offer specialised credit products that include MSME banking, microfinance, youth and women banking, asset finance and leasing.
