Co-operative Bank’s Chief Executive Gideon Muriuki has acquired 11.1 million shares worth Ksh. 179 million in the lender, regulatory filings by the bank have revealed.
With the acquisition of the additional shares, Mr. Muriuki’s overall stake in the bank has risen to 1.96 percent (114.9 million shares) up from 1.77 percent or 103.8 million shares.
The acquisition of the shares by Mr. Muriuki was a well thought out move that the Co-op Bank Chief Executive employed to buy when the stock is cheap and sell when it is high to make profit. The purchase, for example, was made after a noteworthy drop in the lender’s share price.
The bank’s stock traded at a high of Ksh. 16 on February 1 and fell to Ksh. 11.5 on August 21. The drop has been attributed to a bear run at the Nairobi Securities Exchange which affected the bourse and provided investors with an opportunity to acquire stake on the cheap. With the acquisition of the extra shares the market value of the stake owned by Mr. Muriuki is now Ksh. 1.8 billion.
The Co-op boss has remained the largest individual shareholder in the bank since it went public in 2008. He is followed by billionaire investor Baloobhai Patel who currently holds a 0.45 percent stake worth Ksh. 423 million.
In the first nine months of the year, Co-operative Bank posted a net profit of Ksh. 10.9 billion up from Ksh. 10.3 billion recorded in a similar period last year. Co-op Bank attributed the significant gain in its net profits to the growth of its non-interest income. The bank’s total non-interest income rose by Ksh. 3.6 billion to Ksh. 14.1 billion in the period under review.
“The group has continued with a strategy for continued deepening and dominance in our domain market segment leveraging our successful penetration of the micro, medium and small enterprises and the saccos while reviewing opportunities to grow alternative income streams from other services,” Mr. Muriuki said in a statement then.
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