APPROVAL

Co-op bank AGM ratifies Sh5.9bn dividend, Jamii Bora acquisition

Co-op Holdings Co-operative Society received a dividend of Sh3.79 billion.

In Summary

•The society is  strategic shareholder with 64.5 per cent.

•The bank has maintained a solid dividend track record on the back of sustained profitability over the years.

Co-operative MD Gideon Muriuki, Bank chairman John Murugu and vice chairman Macloud Malonza when they hosted the bank’s virtual AGM at the bank’s boardroom yesterday/COURTESY
Co-operative MD Gideon Muriuki, Bank chairman John Murugu and vice chairman Macloud Malonza when they hosted the bank’s virtual AGM at the bank’s boardroom yesterday/COURTESY

Shareholders of Co-operative Bank Group have ratified a dividend of Sh1.00 per share for 2019, same level they  were paid the previous year.

They yesterday also endorsed the acquisition of 90 per cent shareholding by Co-op Bank in Jamii Bora Bank (now trading as Kingdom Bank).

Following the regulatory guidance by the Capital Markets Authority (CMA), the 2019 dividend amounting to a total of Sh5.9 billion was paid out in April.

Co-op Holdings Co-operative Society, the 64.5 per cent strategic shareholder received a dividend of Sh3.79 billion.

The bank has maintained a solid dividend track record on the back of sustained profitability over the years.

Co-operative Bank Group posted a 12.6 per cent growth in net profit for the year 2019, on its 'Soaring Eagle' strategy that has given it a competitive edge.

The listed lender’s net profit was Sh14.3 billion up from Sh12.7 billion in 2018.

Its gross profits rose to Sh20.7 billion up from Sh18.2 billion in the previous financial year as it deepened the financial inclusion model rooted in the 15 million members of the cooperative movement in the country, amid a tough business environment.

It has reported a Sh7.2 billion net profit in the half-year results 2020, with a pre-tax profit of Sh9.6 billion.

 

“The business continues to pursue strategic initiatives that focus on resilience and growth in the ‘new normal’ as the nation focuses on flattening the Covid-19 curve and as vibrancy returns to the economy,” Group MD Gideon Muriuki said yesterday at the virtual AGM

Co-op has restructured a total Sh39.2 billion in loans, as at the close of June this year, to support customers on the Covid-19 pandemic.