Coop Bank approves bonus share issue

Cooperative Bank managing director Gideon Muriuki. Co-operative Bank shareholders have approved a proposed bonus share issue of one for every six held. PHOTO/FILE 

In Summary

• The bank is also exploring the possibility of having a rights issue to raise its capital base to fund expansion of its business.
• Shareholders will get a dividend of 50 cents per share, maintaining the same payment made in 2012. It will be paid on June 30 or thereafter to owners registered at the close of business on June 29.
• Mr Muriuki said the payment has been sustained on the back of excellent performance by the bank for the year 2013, where it registered a  9 per cent profit before tax rise of Sh10.87 billion compared to Sh9.98 billion.

By Nation Correspondent
More by this Author

Co-operative Bank shareholders have approved a proposed bonus share issue of one for every six held.

 

Owners endorsed the recommendation by the board of directors at the bank’s annual general meeting held at the Bomas of Kenya Friday.

“That subject to approval of CMA and Nairobi Securities Exchange, the sum of Sh698,473,000 being the money now standing to credit of the share premium reserves of company be capitalised and be applied for payment of 698,473,000 ordinary shares at Sh1 for every six shares held,” read the resolution.

The bank is also exploring the possibility of having a rights issue to raise its capital base to fund expansion of its business.

“The bank has the capacity to double its capital base if it gets the approval of the Capital Markets Authority for a rights issue. With the current capital base the bank can lend to an individual at least Sh9.2 billion, with the required collateral,” said the bank’s chief executive Gideon Muriuki. 

Shareholders will get a dividend of 50 cents per share, maintaining the same payment made in 2012. It will be paid on June 30 or thereafter to owners registered at the close of business on June 29.

Mr Muriuki said the payment has been sustained on the back of excellent performance by the bank for the year 2013, where it registered a  9 per cent profit before tax rise of Sh10.87 billion compared to Sh9.98 billion.

He said expansion of the bank’s business in East Africa was on course with the branch in South Sudan expected to boost its profits from June.

“South Sudan subsidiary started operations in September 2013 and is expected to contribute positively to our profitability from June 2014. Ethiopia and Uganda are now the new frontiers,” he said