I&M Group is set to receive Sh385.4 million dividend from Port Louis-based Bank One, marking the latest income it is booking from the Mauritius subsidiary.
The Nairobi Securities Exchange-listed firm and Mauritian conglomerate CEIL Limited own Bank One on a 50/50 basis.
“Pursuant to the board meeting held on March 7, 2023, a final dividend of 266.5 million Mauritian Rupees (Sh770.9 million) was approved for distribution as dividend to shareholders subject to approval from Bank of Mauritius,” Bank One said in new disclosures.
The new distribution adds to the dividend of Sh457.6 million that I&M received from Bank One in November 2022.
In 2021, the lender paid out a dividend of MUR168 million (Sh480.5 million), out of which Sh240 million was due to I&M Group.
This dividend, which was approved in November 2021, was, however, only paid out in January 2022 —when it was approved by the Bank of Mauritius— meaning that on I&M’s books, it was booked as 2022 income.
Therefore, the Kenyan lender booked a total of Sh697.6 million in dividend income from its Bank One stake in the year ended December 2022.
I&M is set to pay a record Sh3.72 billion dividend for the year ended December 2022 after posting a 37.7 percent rise in net profit to Sh11.2 billion from Sh8.1 billion in 2021.
The 50 percent payout hike represents a dividend per share of Sh2.25 from Sh1.50 previously and will be paid on or before May 25 and upon shareholder approval.
Bank One draws most of its business in Mauritius but it also holds investments in other markets.
These include Kenya where it has a 3.69 percent stake (4.59 million shares) in Nairobi-based M Oriental Bank whose net income more than doubled to Sh129.4 million in the year ended December.
Bank One made a net profit of MUR493 million (Sh1.41 billion) in the same period, a growth of 19 percent from the MUR413 million (Sh1.18 billion) the lender made in 2021.