The Co-op Bank is poised to reward shareholders with a Sh1.5 per share dividend payout for the full year ending December 2023, subject to regulatory and stockholder approvals.

This translates to a total of Sh8.8 billion earmarked for dividends, reflecting the bank's positive financial performance.

The announcement comes after Co-op Bank reported a 5.2 per cent increase in profit after tax, reaching Sh23.2 billion in the year ending December 2023 compared to the same period in 2022.

Gideon Muriuki, Co-op Bank Group Managing Director and CEO, attributed this success to the bank's "strategic focus on sustainable growth, resilience, and agility."

Co-op Bank's operating income witnessed a modest rise of 0.6 per cent, reaching Sh71.7 billion, compared to Sh71.3 billion in the previous year.

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However, the composition of income sources shifted slightly. While income from non-interest bearing activities grew by 2.8 per cent to Sh26.5 billion, interest income dipped marginally to Sh45.2 billion in 2023 from Sh45.5 billion in 2022.

The bank highlighted the contributions of its subsidiaries, Kingdom Bank Limited and Co-operative Bank of South Sudan.

Kingdom Bank, specializing in Micro, Small and Medium Enterprises (MSMEs), demonstrated remarkable growth with a 36.4 per cent increase in profit before tax, reaching Sh1.08 billion in 2023 compared to Sh792.6 million in 2022.

“Kingdom Bank Limited contributed a Profit Before Tax of Sh1.08 Billion in FY2023, a remarkable growth of 36.4 per cent from Sh792.6 Million reported in FY2022,” the Cooperative Bank stated.

Co-operative Bank of South Sudan, a joint venture with the Government of South Sudan, also saw a significant leap in profitability.

The bank reported a profit before tax of Sh291.3 million in 2023, a 119.5 per cent increase compared to Sh132.7 million in 2022.

Co-op Bank's positive financial performance extends beyond profit growth.

The bank also achieved a commendable 6.1 per cent reduction in total operating expenses, bringing them down to Sh39.7 billion from Sh42.2 billion in the previous year.