Co-operative Bank has announced a Ksh 8.8 billion dividend payout to shareholders, driven by a strong performance for the financial year 2022.
The board has recommended a dividend of Kshs1.50 per share up from Kshs1.00 which is a 50 percent increase, subject to approval by the regulators and shareholders.
The group’s full-year profit after tax grew by 33.2 percent to Kshs22.0 billion from Kshs16.5 billion in the financial year 2021. This is attributed to the bank’s continued to ride on its digital banking and growth strategy to deliver a strong performance.
Profit before tax grew to Ksh 29.4 billion in 2022 up from Ksh.22.6 billion the previous year.
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The performance has led to a sustained increase in shareholder value as reflected in the competitive Return on Equity of 21.2 percent. The Group’s loan book grew by 9.4 percent, extending Kshs339.4 billion in net loans and advances to customers, up from Kshs310.2 billion in 2021.
Deposits hit Kshs607.2 billion, up from Kshs579.8 billion in the same period the previous year. Total assets recorded a 4.7% growth to close the year at Kshs607.2 billion, Kshs579.8 billion in the same period last year.
The bank maintained sustained growth as operating income grew by 17.9 percent from Ksh. 60.4 billion, to Ksh 71.3 billion. Total non-interest income grew by 32.7 percent from Kshs19.4 billion to Kshs25.7 billion.
Net interest income grew by 10.9 percent from Kshs41.0 billion to Kshs45.5 billion. Total operating expenses equally went up by 10.9 percent from Kshs38.1 billion to Kshs42.2 billion.
Over 170,000 customers have taken up the MSME packages that the lender rolled out in 2018, and 33,673 have been trained in business management skills. Year to date, it has disbursed Kshs25.4 billion to MSMEs through Mobile E-Credit solution, who remain a critical part of economic recovery post-covid and contributing up to 16.9 percent of Co-op’s loan book.
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