Shareholders of the Co-operative Bank are smiling all the way to the bank. This follows the bank’s decision to pay Sh. 8.8 billion dividends earlier than the scheduled payment date.
Initially, Co-op Bank was scheduled to pay shareholders dividends on June 9. The board of the Co-op Bank had recommended for a dividends payment of Sh. 1.50 per share amounting to Sh. 8.8 billion. This was an increase of 50 per cent from the amount paid in the same period the previous year.
This dividend was paid to shareholders who were on record as at May 24, 2022. These shareholders included saccos which own a 64.56 per cent stake in Co-op Bank through their investment vehicle Co-op Holdings Co-operative Society Limited.
In the full year ended December 2022, the bank posted a net profit of Sh. 22 billion which was a 33.1 per cent net profit growth from the previous year. This net profit was derived from a pretax profit of Sh. 29.4 billion.
“This strong performance by the bank is in line with the Group’s strategic focus on sustainable growth, resilience and agility,” said Dr. Muriuki.
Over that period, Co-op Bank’s operating income grew by 17.9 per cent from Sh in the financial year under review. 60.4 billion to Sh. 71.3 billion.
Total non-interest income rose by 32.7 per cent from Sh. 19.4 billion to Sh. 25.7 billion. Net interest increased at a slower rate at 10.9 per cent from Sh. 41 billion to Sh. 71.3 billion.
At the same time, Co-op Bank’s expenses increased by 10.9 per cent from Sh. 38.1 billion to Sh. 42.2 billion. Total assets in the financial year grew to Sh. 607.2 billion from Sh. 579.8 billion the previous year to represent a growth percentage of 4.7 per cent.
Customer deposits grew to Sh. 423.8 billion from 407.7 billion. This was a growth of 3.9 per cent.
Since December 2008 when Co-op Bank was listed on the Nairobi Securities Exchange, the lender has built a reputation for consistent payment of dividends that has seen shareholders make gains on the Co-op Bank stock.
These gains have increased with the bank’s net profit growth over the recent few years that has been inspired by a turnaround that has also facilitated acquisition of additional assets such as the Kingdom Bank.