Kenyan banking executive Gideon Muriuki has recorded a loss of Ksh101.1 million ($900,000) in the past 90 days from his stake in the Nairobi-based financial services group, Co-operative Bank Group.
Gideon Muriuki is the CEO of Co-operative Bank Group, one of the largest financial institutions in East Africa, with subsidiary operations in Kenya, Ethiopia, South Sudan and Uganda through Kingdom Securities Limited, Co-optrust Investment Services Limited, Co-operative Consultancy & Insurance Agency Limited, Kingdom Bank Limited and Co-operative Bank of South Sudan.
Aside from his governance roles, Muriuki holds a significant 1.08-percent stake in the leading financial services group, which equates to a total of 63,166,543 ordinary shares.
The recent decline in the market value of his stake can be linked to a sustained decrease in Co-operative Bank Group’s shares, as investors continue to sell down their positions despite the impressive financial results that it posted in the first nine months of 2021.
Due to the sell-off, shares in the Kenya-based group have declined from Ksh13.95 ($0.1241) on Aug. 25 to Ksh12.35 ($0.1099) on Nov. 23. This translates to an 11.5-percent slump.
Research conducted by Billionaires.Africa revealed that the market value of Muriuki’s stake in reaction to the decline has dropped from Ksh881.1 million ($7.8 million) on Aug. 25 to Ksh780 million ($6.9 million) as of the time of writing, accruing a total loss of Ksh101.1 million ($900,000) for the Kenyan executive.
In its Q3 filing, Co-operative Bank Group disclosed that its profits for the nine months ending on Sept. 30 rose by nearly 19 percent from N9.77 billion ($87.05 million) in 2020 to Ksh11.63 billion ($103.54 million) in 2021.
The double-digit growth in its earnings during the period under review was driven by a 22-percent surge in interest income due to increased earning assets and a 16-percent rise in non-interest income as a result of higher transaction volumes.