Co-op Bank shareholders ratify 90 per cent acquisition of kingdom Bank

Nairobi, Kenya: The shareholders of the Co-operative Bank Group at their 12th Annual General Meeting (AGM) held virtually ratified a dividend of Sh1.00 per share.

Following the regulatory guidance by the Capital Markets Authority (CMA), year 2019 dividend amounting to a total cash payment of Sh5.9 billion was paid out in April this year. Co-op Holdings Co-operative Society, the 64.5% strategic shareholder received a dividend of Sh3.79 Billion.

The bank has maintained a solid dividend track record on the back of sustained profitability over the years. Year 2019 performance was remarkable with the Bank reporting a profit before tax of Sh20.7 Billion, a 14 per cent increase from the Sh18.2 Billion in 2018, against a backdrop of a challenging operating environment.

The AGM was also given an update on the Growth Strategies of the Group. The AGM noted the historic challenges occasioned by the Covid-19 pandemic that has brought about unprecedented economic and social disruption globally.

The AGM was appraised 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. In total, Sh39.2 billion in loans have been restructured as at the close of June this year, to support customers on the Covid-19 pandemic.

The AGM ratified the re-election of Messrs Wilfred Ongoro, Lawrence Karissa and Margaret Karangatha to the Board for another term of three years, and also ratified the election of Mrs. Weda Welton as a director of the Company.

The AGM also ratified the acquisition of 90 per cent shareholding by Co-op Bank in Jamii Bora Bank (now trading as Kingdom Bank).