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I&M raises interim dividend as profit jumps 29 percent
I&M Bank Plc Regional CEO Kihara Maina makes his remarks during the banks release of the 2024 Financial Results (FY2024) at the Stanley Hotel on March 26, 2025.
Photo credit: Francis Nderitu | Nation Media Group
I&M Group has raised its interim dividend by 15.3 percent to Sh1.50 per share amounting to Sh2.61 billion amid growth in net profits for the first nine months of the year.
The lender has raised the payout from Sh1.30 per share that it issued last year. The move has come on the back of net earnings for nine months ended September this year growing by 28.7 percent to Sh11.8 billion from Sh9.17 billion in a similar period in 2024.
Shareholders will receive the new interim dividend on or about January 14, 2026. The payout will be applicable to those on the lender’s register as at December 15 this year. I&M shares rose 0.33 percent to reach Sh46 at the Nairobi Securities Exchange by 1:30 pm, marking the stock’s highest level since March 2021.
I&M Group performance came from subsidiaries in Kenya, Uganda, Tanzania and Rwanda as well as a joint venture in Mauritius with CIEL Group where it trades as Bank One.
Kihara Maina, I&M Group regional CEO and interim CEO of I&M Bank Kenya said the performance reflects growth across its regional markets and continued focus on innovation, operational efficiency and regional expansion.
“Our performance demonstrates the strength of our strategy, the confidence of our stakeholders and the trust our customers continue to place in us. We remain committed to delivering sustainable growth while elevating customer experiences through digital-first solutions for individuals and businesses,” he said.
The lender becomes the second to reward shareholders with a higher interim dividend this quarter.
Co-operative Bank of Kenya announced the first-ever interim dividend of Sh1 per share totalling Sh5.86 billion after the lender’s nine-month net profit rose 12.3 percent to Sh21.56 billion.
I&M net interest income rose 21 percent to Sh31.82 billion while non-interest grew by 17.9 percent to Sh11.18 billion, supporting the growth in profits.
The lender enjoyed a reduction in interest expense to Sh17.48 billion from Sh22.74 billion. interest expense on customer deposits dropped by 21.6 percent to Sh14.72 billion.
Kenya’s banking industry has this year seen a relief on interest expenses, coming on the back of declining Central Bank Rate and returns on government paper. This contrasts with the previous year when rising rates slowed down growth in net interest expense.
Operating expenses went up by 15.6 percent to Sh25.84 billion from Sh22.36 billion driven by higher loan loss provisioning and staff costs.
“We are seeing our footprint and segment expansion translate to tangible value creation, where each market is now a distinct engine of growth for the group,” said Mr Kihara.
The review period saw I&M grow its loan book to Sh301.9 billion from Sh281.34 billion, taking its assets to Sh640.41 billion from Sh567.71 billion.
Customer deposits rose to Sh455.85 billion from Sh413.81 billion. The lender has been riding on digital initiatives and increased focus on retail customers to win new deposits.
