Saccos receive Sh3.8b dividend windfall from Co-op Bank stake
This was the highest payout to shareholders since the listing of the bank. “This year’s Sh1 dividend matches the entire initial investment by the co-operative movement in the bank, thereby enabling them to recoup their investment in full, and can be regarded as ‘shilling-for-shilling’ dividend payout,” said Co-operative Bank Group Managing Director during the AGM. The lender’s shareholders approved a dividend payout of Sh5.9 billion after the lender’s net profit for the year ending December 31, 2018 grew by 11.4 per cent to Sh12.7 billion, up from Sh11.4 billion recorded in the previous year.
SEE ALSO :Use saccos to fight poverty, corruptionMr Muriuki termed the performance “remarkable” coming against a backdrop of a challenging operating environment marked by rate caps, adverse economic effects of drought and the slow economic recovery from the extended electioneering period. “The good performance was made possible by the gains from the Transformation Project that the bank has been implementing since 2014 focused on improving operational efficiency, superior customer service and lower operating costs,” explained Muriuki, who is also a shareholder at the bank. Co-operative is one of the five banks that will pilot a new mobile lending product named Stawi for micro, small and medium enterprises (MSMEs). The mobile phone-based credit scheme backed by Central Bank of Kenya aims at improving access to credit for MSMEs which still encounter significant challenges in accessing the formal credit market because of the informal nature of their operations and lack of collateral for secured loans. Other lenders under the Stawi programme include Commercial Bank of Africa, Diamond Trust Bank, NIC and KCB. Like many other lenders, the bank continued to leverage on technology to contain its spending bills. “Through our multi-channel strategy, the bank has successfully moved 88 per cent of all customer transactions to alternative delivery channels,” Muriuki said in a statement early this year.
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