The Co-operative Bank of Kenya shareholders are poised to be paid Ksh 5.9 Billion in dividends.The figure is same level as 2018’s dividend payouts.
Following the regulatory guidance by the Capital Markets Authority (CMA), the Co-operative Bank Group approved that shareholders will receive Ksh 1 per share in dividend payment during their 12th Annual General meeting held virtually yesterday. The 64.5% strategic shareholder, Co-op Holdings Co-operative Society received a dividend of Kshs 3.79 Billion.
The bank, which was named the best in the country at this year’s African Banking Awards 2020 organised by EMEA Finance, has maintained a solid dividend track record on the back of sustained profitability over the recent years. Co-op bank hired the management consulting firm McKinsey & Company for the second time to review its lending processes with an aim of reducing the risk of defaults.It first seeked McKinsey’S services in 2014 to cut costs and transform the Nairobi Securities Exchange-listed firm into a digital bank.
“This time round we have brought McKinsey on board to give a critical focus on credit risk management in the Covid-19 environment,” Co-operative bank Group managing director and CEO Gideon Muriukisaid at the company’s virtual AGM held on Thursday).
The AGM approved the re-election of Messrs Wilfred Ongoro, Lawrence Karissa and Margaret Karangatha to the Board for another term of three years, and also approved the election of Mrs Weda Welton as a director of the Company.
The AGM was also given an update on the Growth Strategies of the Group and noted the historic challenges occasioned by the COVID-19 pandemic that has brought about unprecedented economic and social disruption globally.It also considered that the 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.As at the close of June this year , a total of Kshs. 39.2 billion in loans have been restructured.
The shareholders also approved the acquisition of Jamii Bora Bank which now trades as Kingdom.