Co-op Bank Rewards Investors with Early Dividend Payment of Sh8.8 Billion

Co-operative Bank of Kenya has disbursed its Sh8.8 billion dividends ahead of the scheduled date of June 9.

This early payment has significantly bolstered the liquidity of the bank’s shareholders, encompassing saccos, individuals, and various institutions.

The bank made the surprise distribution on Friday last week.

Nairobi Securities Exchange-listed firms typically pay dividends on the scheduled date or a few days later, depending on the efficiencies of the share registrars and the means by which an investor elects to be paid.

Following suit with other publicly traded banks, Co-op Bank joined the ranks of institutions that recently distributed their dividends.

This development highlights the months of May and June as a period with a significant concentration of dividend payouts within the banking industry.

Co-op Bank boosted its dividend payout by 50 percent to Sh1.5 per share for the fiscal year ending in December 2022. Shareholders who were recorded as of May 24, 2022, received the increased dividend payment.

They included saccos which own a 64.56 percent stake in the bank through their investment vehicle Co-op Holdings Co-operative Society Limited.

The saccos’ investment vehicle received Sh5.6 billion in the payout which came after the bank reported a 33 percent net profit growth to Sh22 billion in the year ended December 2022, helped by a surge in interest and non-interest income.

In the first quarter ended March, the bank reported a 4.7 percent net profit growth, benefitting from higher interest income from loans.

Its net earnings rose to Sh6.1 billion in the review period, up from Sh5.8 billion the year before.

The lender said the performance, which saw its return on shareholder funds stand at 22.2 percent, fits with its sustainable growth plan.

The firm’s total interest income rose 11.2 percent to Sh15.5 billion, reflecting the impact of the loan book expanding by Sh35.6 billion to Sh360.1 billion.

Co-op Bank reduced its investment in government debt securities by Sh4.1 billion to Sh179.2 billion.