I&M Group raised its dividend payout to shareholders by half to KSh2.25 per share from KSh1.50 after posting a 37.7 per cent 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 Kshs 3.72 billion from KSh2.48 billion in 2021.
The recommended dividends represent a 50.0 per cent increase from the Kshs 1.5 per share paid in 2021.
The increase in dividends by the bank mirrors improved payouts by peers in the industry, including Co-operative Bank, Standard Chartered, Stanbic, Equity, DTB, and NCBA, who have all raised dividends on the back of improved profitability.
I&M Group PLC has recorded a strong performance of KES 11.6 billion in profit after tax for the full year ending December 2022. This is a 34% increase in profitability from KES 8.6 billion reported during a similar period in 2021.#IMBank2022FYResults pic.twitter.com/MnC0gCqXq5
— I&M Bank Kenya (@imbankke) March 31, 2023
The net earnings growth for I&M, from KSh8.1 billion in 2021, is mainly attributable to higher income, with total operating income growing by 20.6 per cent to KSh35.7 billion.
Non-interest income was the most significant contributor to the growth, improving by 46 per cent to KSh12.7 billion from KSh8.7 billion in 2021.
Foreign exchange trading income grew nearly twofold, hitting KSh5 billion from KSh1.7 billion as the bank profited from volatility in the local exchange rate across the year.
Net interest income rose 9.6 per cent to KSh22.9 billion from KSh20.9 billion as the loan book expanded by 13.3 per cent to KSh238.6 billion.
| Income Statement (Kshs bn) | FY’2021 | FY’2022 | y/y change |
| Net Interest Income | 20.9 | 22.9 | 9.9% |
| Net non-Interest Income | 8.7 | 12.7 | 45.7% |
| Total Operating income | 29.6 | 35.7 | 20.4% |
| Loan Loss provision | (4.2) | (5.2) | 24.9% |
| Total Operating expenses | (17.7) | (21.3) | 20.2% |
| Profit before tax | 12.4 | 15.0 | 20.8% |
| Profit after tax | 8.6 | 11.6 | 34.3% |
| Core EPS | 5.2 | 7.0 | 34.3% |
| Dividend Per Share | 1.5 | 2.25 | 9.9% |
| Dividend payout ratio | 28.8% | 32.1% | 3.4% |
