Companies
Co-op Bank raises dividend by half as profit hits Sh22 billion
Thursday March 16 2023
A Co-op Bank branch in Nairobi. FILE PHOTO | NMG
Co-operative Bank has increased its dividends by half as net profit for the year ended December 2022 rose to Sh22 billion on the growth of non-funded income.
The lender recommended a dividend of Sh1.50 per share, a 50 percent increase on the Sh1 paid out last year, a major boost to the co-operative societies, the bank’s majority shareholders.
“The strong performance has led to a sustained increase in shareholder value as reflected in the competitive return on equity of 21.2 percent,” Co-op Bank chief executive Gideon Muriuki said Thursday.
Also read: Co-op Bank tops in customer service
The Nairobi Securities Exchange (NSE) listed lender’s net profit grew 33.3 percent from Sh16.5 billion in 2021.
In addition to an increase of more than a third in non-interest income, including fees and commissions, profitability was also attributed to cost management, with the cost-to-income ratio declining to 47.1 percent in the review period from 59 percent a year earlier.
Co-op Bank’s operating income grew by 17.9 percent from Sh60.4 billion to Sh71.3 billion.
Total non-interest income rose by 32.7 percent from Sh19.4 billion to Sh25.7 billion.
Net interest increased at a slower rate at 10.9 percent from Sh41 billion to Sh71.3 billion.
The lender’s expenses increased by 10.9 percent from Sh38.1 billion to Sh42.2 billion.
