Co-operative bank has become the first listed lender to announce that it is paying dividends to shareholders before the Annual General Meeting which offers shareholders an opportunity to endorse the proposed dividends.
The listed lender says it plans to pay shareholders a total of Ksh 5.9 billion in dividends on Thursday next week.
The co-operative bank proposed to pay one shilling per share in dividends after the lender posted Ksh 14.3 billion in 2019 full-year net profit, representing a 12.6 per cent increase on the previous year’s earnings.
The lender says it plans to pay shareholders the proposed dividends on Thursday next week.
This makes the Co-operative Bank the first lender to pay shareholders dividends.
“With the current Covid-19 challenges, the critical need to release the much-needed funds to the grassroots in the over 15 million-member co-operative movement and in line with Capital Markets Authority guidelines, the bank is progressing to make the dividend payment for ratification at the next Annual General Meeting,” Co-operative Bank said through a statement.
The lender expects the dividend pay-out to offer a most timely relief and a boost to ongoing efforts to mitigate the severe economic hardships caused by the Covid-19 pandemic.
Co-operative Bank is appealing to appeal to all Kenyans and other people of goodwill to join hands in the fight against Covid-19.
The lender made a cash contribution of Ksh 100 million to the Covid-19 Emergency Response Fund.
Other institutions that have contributed to the kitty include the central bank that offered Ksh 7.3 billion from unreturned old Ksh 1,000 notes.
Kenyan Business Feed is the top Kenyan Business Blog. We share news from Kenya and across the region. To contact us with any alert, please email us to [email protected]