Kenya's Co-op Bank pays shareholders $68m in dividends

AFRICAN STOCKS AND FINANCEJune 16, 2024 at 7:23 PM UTC

TLDR

Co-operative Bank distributed a dividend of Sh8.8 billion ($68.1 million) to investors after a virtual annual general meeting.
The dividend proposed was Sh1.5 per share, totaling Sh8.8 billion, in line with the previous year's distribution.
Co-op Bank's share prices have risen by 14.05% year-to-date, currently trading at Sh13.8, with other banks like Equity Bank, NCBA, and Standard Chartered also seeing increases after declaring dividends.

Co-operative Bank disbursed a dividend of Sh8.8 billion ($68.1 million) to its investors, following approval at a virtual annual general meeting held last month. The Nairobi Securities Exchange-listed lender becomes the second bank, after Stanbic, to distribute profits to its shareholders this year.

The Co-op board had proposed a dividend of Sh1.5 per share, totaling Sh8.8 billion, consistent with the previous year. The largest shareholder, Co-op Holdings Co-operative Society Limited, received Sh5.68 billion for its 64.56% stake.

Year-to-date Co-op Bank’s share prices have increased by 14.05% to trade at Sh13.8. Equity Bank, NCBA, and Standard Chartered have also seen a pickup in their counters at the Nairobi bourse after they declared dividends.

Key Takeaways

Diamond Trust Bank and Equity Bank are among the banks that have closed their books and are awaiting dividend payments to shareholders, scheduled for June 28 and June 29, respectively. Listed banks on the Nairobi Securities Exchange are set to distribute a total of Sh66.4 billion in dividends, accounting for nearly half of all dividends paid out by NSE-listed firms. The substantial payouts from the banking sector have attracted investor interest in bank stocks on the NSE, contributing to the rise in share prices observed this year.

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