[2008-07-01]  Co-op Bank to list shares at the NSE
Co-operative Bank shareholders have given the bank a final approval to enable the bank to list shares at the Nairobi stock exchange later in the year through an Initial Public Offer.

Five directors of Equity Bank retire in accordance with company act but offer themselves for re-election while for the third year running National bank shareholders miss dividend payments.

Equity bank and the National bank held their annual general meetings to discuss with shareholders their banks performance over the year 2007.

Equity bank performance for the year was impressive recording a pre tax profit of 2.38 billion compared to 1.10billion shillings reported in 2006.

This was a growth of 116 percent.

The bank which has been included in the 20 share index from 1st July says the company's market capitalization grew to about 54 billion at the stock exchange from 12.6 billion the previous year after Helios EB company become a major shareholder raising additional 11billion shillings.

Shareholders will be paid 2 shillings per ordinary share.

With over 350 ATMS countrywide, the bank says it will continue with its expansion programme on expansion.

The National bank shareholders will not get any dividend payments for the third year running.

Although the bank net profit increased by 79.2 percent to 1.12billion in 2007 compared to 625million the previous year most of the money was used to service loan losses incurred in the previous years.

And the Cooperative Bank of Kenya has given a final approval for the bank to issue an initial public offer sometime this year.

The banks managing Director Gideon Muriuki says the bank projects to raise around 10 billion to recapitalize and finance the banks expansion programme.

The IPO is also projected to enhance the banks competitiveness in the market.

Source: KBC