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Co-operative Bank Group (Co-op Bank), led by Kenyan banking magnate Gideon Muriuki, has announced plans to distribute dividends amounting to Ksh8.8 billion ($66.45 million) to its shareholders, highlighting the bank’s robust performance in 2023.
Subject to approval by shareholders, the financial services group will disburse a dividend of Ksh1.5 ($0.01133) per share to all stakeholders, including Muriuki, who holds 117,471,300 ordinary shares in the Nairobi-based lender.
The substantial dividend payout, subject to approval by Co-op Bank’s regulators and shareholders on May 17, 2024, underscores the bank’s commitment to rewarding shareholders and maximizing investor value. The proposed dividend marks a significant milestone for the group and reflects its strong financial position.
Muriuki stands to pocket $1.3 million
Co-op Bank, a major player in East Africa’s financial sector, boasts several subsidiaries including Kingdom Securities Ltd., Co-op Trust Investment Services Ltd., Co-operative Consultancy & Insurance Agency Ltd., Kingdom Bank Ltd., and Co-operative Bank of South Sudan.
Architect of the bank’s expansion in recent times, CEO Gideon Muriuki stands to pocket more than $1.3 million from his two-percent stake in Co-op Bank. This payout would solidify his position among Kenya’s top dividend earners and as one of the wealthiest investors on the Nairobi Securities Exchange.
Co-operative Bank Group’s announcement of record dividends reflects its commitment to rewarding shareholders amid robust financial performance. The substantial payout, pending approval, is anticipated by stakeholders and further cements the bank’s position as a leader in East Africa’s financial landscape.
Co-op Bank raises dividend as profit climbs
The generous dividends, totaling Ksh8.8 billion ($66.45 million), are backed by Co-op Bank’s impressive financial performance, evidenced by a staggering profit surpassing Ksh23 billion ($170 million) at the end of its 2023 fiscal year. According to the group’s financial results, profit rose by 5.22 percent to Ksh23.19 billion ($174.69 million), attributed to increased income and reduced operating costs.
Gideon Muiuki commented on the bank’s financial performance, noting, “The strong performance has led to a sustained increase in shareholder value as reflected in the competitive return on equity of 21 percent. The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors.”
