Co-operative Bank Group shareholders have held their 12th Annual General Meeting (AGM) virtually and ratified a dividend of Sh1.00 per share, being the same level of dividend payout as for the previous year, 2018.
The 2019 dividend amounting to a total cash payment of Sh 5.9 Billion was paid out in April this year as per the regulatory guidance of the Capital Markets Authority (CMA).Co-op Holdings Co-operative Society, the 64.5% strategic shareholder received a dividend of Kshs 3.79 Billion.
The payment is considered a timely injection of liquidityto shareholders and notably the 15 million-member Co-operative Movement to mitigate the economic ravages of the pandemic.
The bank has maintained a solid dividend track record on the back of sustained profitability over the years. Year 2019 performance was remarkable with the Bank reporting a profit before tax of Sh 20.7 Billion, a 14% increase from the Sh18.2 Billion in 2018, against a backdrop of a challenging operating environment.
The AGM was also given an update on the Growth Strategies of the Group, noting the historic challenges occasioned by the Covid-19 pandemic that
has brought about unprecedented economic and social disruption globally. It was also appraised that the bank Group continues to implement proactive enterprise risk management initiatives to ensure uninterrupted business operations.
A key activity in this respect entails engaging customers to support
them through this period by re-aligning the servicing of facilities, funding and transactional needs. In total, Kshs. 39.2 Billion in loans have been
restructured as at the close of June this year, to support customers on the
The AGM also ratified the re-election of Messrs Wilfred Ongoro, Lawrence Karissa and Margaret Karangatha to the Board for another term of three years, and also ratified the election of Weda Welton as a director of the Company.
Meanwhile, the AGM has ratified the acquisition of 90 per cent shareholding by Co-op Bank in Jamii Bora Bank (now trading as Kingdom Bank).