I&M Group raises dividend by half as profit grows to Sh11.2bnWednesday March 29 2023
I&M Group has raised its dividend payout to shareholders by half to Sh2.25 per share from Sh1.50 after posting a 37.7 percent growth in net profit for 2022 to Sh11.2 billion.
The first and final dividend, to be paid on or before May 25 and after shareholders' approval, will see the lender payout Sh3.72 billion from Sh2.48 billion last year.
The increase in dividends by the bank mirrors improved payouts by peers in the industry, including Standard Chartered, Stanbic, Equity, DTB and NCBA, who have all raised dividends on the back of improved profitability.
The net earnings growth for I&M, from Sh8.1 billion in 2021, is mainly attributable to higher income, with total operating income growing by 20.6 percent to Sh35.7 billion.
Also read: I&M gets Sh457m dividend from Mauritius subsidiary
Non-interest income was the largest contributor to the growth, improving by 46 percent to Sh12.7 billion from Sh8.7 billion in 2021.
Foreign exchange trading income grew nearly twofold, hitting Sh5 billion from Sh1.7 billion as the bank profited from volatility in the local exchange rate across the year.
Net interest income rose 9.6 percent to Sh22.9 billion from Sh20.9 billion as the loan book expanded by 13.3 percent to Sh238.6 billion.