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Co-operative Bank Group (Co-op Bank), founded by Kenyan banking billionaire Gideon Muriuki, aims to deliver dividends of Ksh8.8 billion ($66.45 million) to shareholders, citing the bank’s strong performance in 2023.
Subject to shareholder approval, the financial services business would pay out a dividend of Ksh1.5 ($0.01133) per share to all stakeholders, including Muriuki, who owns 117,471,300 ordinary shares in the Nairobi-based institution.
The hefty dividend payout, which is subject to approval by Co-op Bank’s authorities and shareholders on May 17, 2024, demonstrates the bank’s commitment to rewarding shareholders and increasing investor value. The proposed dividend is a key milestone for the company and demonstrates its excellent financial condition.
Co-op Bank, a key player in East Africa’s financial industry, has various subsidiaries, including Kingdom Securities Ltd., Co-op Trust Investment Services Ltd., Co-operative Consultancy & Insurance Agency Ltd., Kingdom Bank Ltd., and the Co-operative Bank of South Sudan.
CEO Gideon Muriuki, who oversaw the bank’s recent expansion, expects to earn more than $1.3 million on his two percent interest in Co-op Bank. This distribution will cement his position as one of Kenya’s top dividend earners and wealthiest investors on the Nairobi Securities Exchange.
The Co-operative Bank Group’s announcement of record dividends demonstrates its commitment to repaying shareholders despite strong financial performance. The hefty payout, which is still pending clearance, is anticipated by stakeholders and strengthens the bank’s position as a financial leader in East Africa.
Co-op Bank’s strong financial performance, including a profit of Ksh23 billion ($170 million) at the conclusion of its 2023 fiscal year, supports the substantial dividends of Ksh8.8 billion ($66.45 million) paid out. According to the group’s financial reports, profit increased by 5.22 percent to Ksh23.19 billion ($174.69 million), owing to more income and lower operating costs.
Gideon Muiuki commented on the bank’s financial performance, stating, “The robust performance has led to a steady increase in shareholder value, as indicated in the competitive return on equity of 21%. The Co-operative Bank Group continues to pursue strategic initiatives that promote resilience and growth in numerous economic sectors.”
