Co-operative Bank of Kenya shareholders will from next week Thursday start receiving Sh5.86 billion dividend despite the coronavirus pandemic that has interfered with the holding of the annual general meeting (AGM).
The lender has told its investors that the dividend shall be paid on or about April 23, being earlier than the pay date for last year when shareholders received dividends from June 7.
This is in line with the advice from the Capital Markets Authority (CMA), which on April 3 allowed firms to pay dividends without approval from shareholders.
“With the current Covid-19 challenges, the need to release the much needed funds to the grassroots in the over 15-million-member cooperative movement and in line with CMA guidelines, the bank is progressing to make the dividend payment for ratification at the next AGM,” said the bank in a notice.
Co-op Bank becomes the second Nairobi Securities Exchange-listed firm to announce that it will pay dividend ahead of an AGM, after agricultural firm Kakuzi issued similar guidance.
The payout offers much needed relief to the shareholders at a time the coronavirus pandemic has interfered with business activities leading to job cuts and unpaid leaves that have left homes with cash flow challenges.
Co-op Bank board had last month recommended payment of Sh1 per share, which was to be ratified in an AGM as has been the tradition with companies.
The payout will see top shareholder, Co-op Holdings Co-operative Society Limited with a stake of 64.56 percent pocket Sh3.79 billion, while CEO Gideon Muriuki will get Sh117.7 million for his two percent stake.
Amarjeet Baloobhai Patel and Baloobhai Chhotabhai Patel, who are the seventh highest shareholders will receive Sh20.2 million for their 0.34 percent stake.
Co-operative Bank Group’s net profit grew 12.4 percent to Sh14.3 billion last year, lifted by strong growth in non-interest income.
Total non-interest income, mainly from fees and commissions on loans and advances, increased by 33 percent from Sh12.8 billion to Sh17.3 billion. The lender went public in 2008 at an offer price of Sh9.5, equivalent to an aggregate value of Sh33.2 billion.
Co-op ‘s latest payout will take the lender’s cumulative payouts to Sh40.56 billion.
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