Cooperative Bank of Kenya declares Ksh 5.7bln in dividend to be paid to cooperatives
NAIROBI– Cooperative societies which have a combined 64.5 shareholding in the Cooperative Bank of Kenya are poised to receive dividends amounting to Ksh 5.7 billion.
This follows a significant growth in the full year in net profit registered by the bank at the close of the 2022 financial year.
According to the full-year 2022 financial results of the financial institution which also operates in South Sudan, net profit increased to Ksh 22bln in 2022 compared to Ksh 16.5bn in 2021, an increase of 33 percent.
According to local news agencies, shareholders will receive a total dividend payout of Ksh 8.8bln out of which Ksh 5.7bln will be paid out to majority shareholder CoopHoldings Cooperative Society Limited.
CoopHoldings Cooperative Society Limited is a holding company owned by the cooperative societies within Kenya, who jointly own a controlling majority of shares of 65 percent of all company stock. Co-op Holdings Co-operative Society is the strategic investor representing the Kenya Co-operative movement.
The remainder is owned by individual and institutional investors through the Nairobi Securities Exchange [NSE].
The lender’s 2022 full-year results indicate that its balance sheet size grew by 4.7 percent to Ksh 607.2bln while net loans and advances increased by 9.5 percent to Ksh 339.4bln.
Directors of the Bank have recommended a 50% increase in dividend per share of Ksh 1.50 compared to Ksh 1 per share paid out the previous year, a significant gain to cooperative societies that are the majority shareholders.
Dr Gideon Muriuki, the Co-operative Bank of Kenya Chief Executive says the significant growth in net profit is a boost to shareholder value as reflected in the competitive return on equity of 21.2 percent.
The lender also recorded an increase in its non-interest income-including fees and commissions while its cost-to-income ratio fell to 47.1 percent in 2022 from 59 percent in 2021.
The bank recorded a 9.4 percent increase in net loans and advances to customers to Ksh 339.4 billion, pushing up the lender’s net interest income to Ksh 45.5bln from Ksh 41bln in 2021. The lender registered a 17.9 percent jump in operating income to Ksh 71.3bln in 2022 from Ksh 60.4bln in 2021.
The lender posted a 3.9 percent increase in customer deposits to Ksh 423.8bln in 2022 from Ksh 407.7bln in 2021 while its balance sheet size grew by 44 percent to Ksh 607.2bln from Ksh 579.8bln in 2021.
https://thecooperator.news/bou-tasked-to-explain-sale-of-cooperative-bank-assets/
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