The Co-operative Bank shareholders have recouped their initial investment in the lender. This follows a historic dividend pay that was approved by the shareholders during the bank’s annual general meeting (AGM). The 11th AGM was held on Thursday in Nairobi.
During the AGM, the shareholders approved a payout of Sh. per share. This brought the total payout to Sh. 5.8 billion for the current financial year. It also meant that the shareholders were getting a shilling for shilling dividend pay.
“This year’s Sh1 dividend matches the entire initial investment by the co-operative movement in the bank thereby enabling them to recoup their investment in full, and can be regarded as ‘shilling-for-shilling’ dividend payout,” said Gideon Muriuki who is Co-op bank’s chief executive officer.
During the AGM, Mr. Muriuki revealed that Co-op Bank’s successes over the 2018 financial year were driven by a transformation agenda which had re-tooled and re-equipped the lender, and given it a competitive edge in the market.
It was also revealed that the bank currently serves up to 14,596 Kenyans in the diaspora, making it the leading bank for the diaspora market. Over 26,800 customers have also taken up the rolled out Micro, Small and Medium Enterprises (MSME) that the bank launched in 2018 and 1,600 have been trained on business management and planning. Mr. Muriuki also noted that the bank’s model of retail banking services through Sacco Fosas has enabled them to provide wholesale financial services to over 464 FOSA outlets, and issue over 1 million Sacco-Link cards.
The AGM came hot on the heels of the release of Co-op Bank’s first quarter financial results. Co-op Bank announced a 4.4 per cent jump in profit for the first quarter of 2019. The bank has realized a profit after tax of Sh. 3.6 billion compared to Sh. 3.4 billion which it posted in the previous year. It’s profit before tax stood at Sh. 5.1 billion compared to Sh. 4.9 billion that the lender realized in the previous year.
The bank further announced that it will continue to deliver good performance as it focuses on growing its 8.2 million account holder base, digital banking, the basked of innovative financial solutions, efficient delivery of services and multi-channel access to retain market position and deliver business growth and profitability.