Sacco receives Sh3.78b dividend from Co-op Bank

(Left to right) The Chairman Co-operative Bank John Murugu flanked by the bank’s Managing Director Gideon Muriuki present a dividend cheque of Sh3.8 billion to the Chairman of Co-op Holdings Co-operative Society Macloud Malonza. Sacco shareholders in Co-op Bank stand to earn a record dividend totaling Sh3.8 billion following the approval of dividend by the Co-op Bank AGM held at the Bomas of Kenya on Thursday 23 May 2019.

Co-operative Bank’s shareholders will recoup their investment in full this year from dividend payouts with Co-op Holdings Co-operative Society getting the largest payout of Sh3.78 billion.

This year’s dividend payment is the highest ever, and matches the entire initial investment by the Co-operative Movement in the Bank thereby enabling them to annually literally recoup their investment in full, and has  been regarded as ‘Shilling-for-Shilling’ dividend payout.

The Chairman of Co-op Holdings  Co-operative Society applauded the uniqueness of the Cooperative financial system that touches over 22,000 saccos following the remarkable performance of the lender that reported a pretax profit of Sh18.2 billion in 2018.

Mr Macloud Malonza aired his sentiments at a brief cheque presentation ceremony at the bank’s head office yesterday where the Chairman of the Bank Mr John Murugu together with the bank’s Group Managing Director and CEO Dr Gideon Muriuki presented a dividend cheque of Sh3.78 billion to Co-opholding Cooperative Society.

The Society has a 64.5 per cent stake in Co-operative Bank as a strategic shareholder representing Kenya’s Co-operative Movement and was formed in 2008 to facilitate the listing of the bank on the Nairobi Securities Exchange (NSE) in 2008.

The lender has maintained a strong dividend track record on the back of a sound sustained profitability growth over the years. Coop bank has grown over the years to now the third largest bank in the region with an asset base of over Sh425 billion.

This week, it reported a profit before tax of Sh5.1 billion for the first quarter of this year.