The Co-operative Bank Group has announced that its shareholders will receive Ksh. 5.9 billion in dividends for the year ended December 2019.
The dividends will be allocated at Ksh. 1 for every Co-op Bank share and they will be distributed to shareholders on April 23, 2020. Of the total dividend sum, Ksh.3.79 billion will be awarded to Co-op Holdings Co-operative Society for its 64.5 percent stake in the company.
According to the bank, the dividend provision is aimed at increasing cash flow to the country’s grass-root level and the Group’s over 15 million-member co-operative movement.
“In line with Capital Markets Authority guidelines, the bank is progressing to make the dividend payment for ratification at the next Annual General Meeting. The dividend payout is expected to offer a most timely relief and offer a boost to ongoing efforts to mitigate the severe economic hardships caused by the Covid-19 pandemic,” Co-op Bank company secretary Samuel Kibugi said in a statement.
The lender has maintained a solid dividend track record on the back of sustained profitability over the years. In the full year ended December 2019, the bank reported a pre-tax profit of Ksh. 20.7 Billion compared to Ksh. 18.2 Billion recorded in 2018, a growth of 1% in the year.
In the period under review, the Group’s profit similarly rose to Ksh. 14.3 billion compared to Ksh. 12.7 billion in the previous year. Total operating income grew by 10.9% from Ksh. 43.68 billion to Ksh. 48.46 billion. The growth in the lender’s operating income was attributed to an increase in total interest income from Ksh. 43.02 billion to Ksh. 43.64 billion on account of; Interest income from government securities increasing by 16% from Ksh. 9.79 billion to Ksh. 11.35 billion and interest income from loans and advances decreasing slightly by 3.5% from Ksh. 32.95 billion to Ksh. 31.78 billion.