Baloobhai Patel buys Sh145 million additional Co-op Bank shares

Nairobi Securities Exchange billionaire trader Baloobhai Patel has acquired Sh145.2 million additional Co-op Bank shares. This investment is equivalent to 8.8 million shares and has seen the billionaire’s stake in Co-op Bank rise by 1.7 percent.

According to the latest disclosures, Patel’s stake in the bank increased by 0.25 percent from 1.55 percent in September 2024.

Co-op Bank shares have become a highly attractive counter for medium to long term investors looking to make gains, especially from dividend payout. For instance, in June 2024, Co-op Bank paid out Sh8.8 billion in dividend for the full year 2023. This was equivalent to a rate of Sh1.5 per share.

Cheaper loans at Co-op as bank cuts its base lending rate to 14.5 percent

The dividend payments followed an impressive full year performance which saw Co-op Bank record a net profit growth to Sh23.2 billion for the full year ended December 2023. This represented a 5.2 percent growth from the Sh22 billion net profit that was posted in a similar period the previous year.

This profit growth was largely fueled by increased income and reduced operating costs. In addition to this, Co-op Bank’s asset base grew 10.5 percent to Sh671 billion while customer deposits grew 6.6 percent to Sh451.6 billion.

Patel’s additional Co-op Bank shares purchase came hot on the heel of a major pay off that saw Patel make a killing from his share investment in Bamburi Cement whose acquisition by Tanzanian firm Amsons Group was concluded in January 2025. Patel made a gain of Sh1.25 billion on the value of his stake as of June 30 when his stake comprised of 30.5 million shares.

Currently, the Co-op counter at the NSE is trading at an average of Sh16.50 per share with a one year high of Sh18 per share and a low of Sh11.50 per share.