It is a huge relief for shareholders of Co-operative Bank of Kenya. This follows a move by the Bank’s Directors to move back the date of dividend payments to its shareholders as a response to the COVID 19 menace.
A statement from the Bank mentions that the first and final dividend for 2019 of KSh 1 per ordinary share held will now be paid about or on 23rd April 2020. This is a revision from the earlier date of on or about 5th June 2020.
The shareholders’s register will remain closed on 15th April for purposes of processing these payments.
“With the current COVID-19 challenges, the 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 AGM,” said Mr Samwel Kibugi, Company Secretary in a statement.
Co-operative Bank Group posted a net profit of KSh 14.3 billion at the close of the financial year ended 31st December, 2019. This is compared to KSh 12.7 billion recorded in 2018.
The lender’s action on dividend payouts follows an advisory by the Capital Markets Authority (CMA) that AGMs scheduled for March, April and May 2020 be deferred to a later date. In view of this, the date of the AGM by many affected listed firms, have been postponed until further notice.