Saccos set for KSh5.7 billion dividend bonanza from Co-op Bank’s KSh32 billion profit haul

Co-op Bank Group Managing Director and Chief Executive Officer (CEO) Dr Gideon Muriuki

Savings and Credit Co-operatives (Saccos) will this year receive Ksh5.7 billion in dividend after Co-operative Bank of Kenya announced profit before tax of Ksh32.4 billion for Full Year 2023 as it prepare to have its virtual Annual General Meeting (AGM)  on May 17, 2024.

This will be the same level of dividend paid to Saccos for the year 2022 and comes as a most timely cash injection to the movement in light of depressed economic activity, even as large listed companies such as Kenya Commercial Bank (KCB) have even voided paying dividend this year.

The 2023 profit before tax is a commendable 10 per cent growth from Ksh29.4 billion in Full Year 2022. It represents a Profit after Tax of Ksh23.2 billion compared to Ksh22.0 billion reported in 2022.

The Group Managing Director and Chief Executive Officer (CEO) Dr Gideon Muriuki stated that the strong performance by the bank is in line with the Group’s strategic focus on sustainable growth, resilience and agility.

In a statement signed by Dr Muriuki dated March 20, 2024, the strong performance has led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 21.0 per cent, with the Board of Directors (BoD) recommending a dividend payment of Ksh8.8 billion, being a payout of Ksh1.50 per share subject to approval by the regulators and shareholders.


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In the statement, the financial position of the Group shows that the total assets grew by 10.5 per cent to Ksh671.1 billion from Ksh607.2 billion in the same period last year. Net loans and advances grew to Ksh374.2 billion (10.3 per cent) from Ksh339.4 billion in 2022, while customer deposits grew to Ksh451.6 billion, a 6.6 per cent increase from Ksh423.8 billion.

External funds from development partners stood at Ksh67.3 billion from Ksh48.1billion in 2022, as shareholder funds grew by 5.5 per cent from Ksh107.7 billion in 2022 to Ksh113.6 billion.

On Comprehensive Income, the total operating income grew by 0.6 per cent from Ksh71.3 billion to Ksh71.7 billion, total non-interest income grew by 2.8 per cent from Ksh25.7 billion to Ksh26.5 billion, net interest income remained stable at Ksh45.2 billion as compared to Ksh45.5 billion in 2022, and total operating expenses reduced by 6.1 per cent from Ksh42.2 billion to Ksh39.7 billion.

The Group reported excellent efficiency gains from the various initiatives to record a Cost-to-Income Ratio of 47.0 per cent in FY2023 from 59 per cent in FY2014 when it began its Growth and Efficiency journey.

“The Co-operative Bank Group continues to pursue strategic initiatives that focus on resilience and growth in the various economic sectors. This is anchored on a successful universal banking model supported by an innovative digital presence, a wide physical footprint, and the unique synergies in the over 15-million-member co-operative movement that is the largest in Africa,” said Dr Muriuki in the statement released to the media.

By our reporter

Additional reporting By Obegi Malack

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