I&M Bank shareholders are pleased after the lender declared a dividend payout of Sh3.72 billion following a 34% increase in profits.
The growth in profits to Sh11.2 billion saw the regional lender raise its dividend payout to shareholders by half to Sh2.25 per share from Sh1.50 in the last financial year subject to shareholders’ approval.
In the period under review, the Group’s balance sheet and income metrics improved on the backdrop of strong liquidity and a solid capital base.
I&M Group chairman Daniel Ndonye attributed the growth to the continued implementation of its iMara 2.0 strategy, focusing on business growth, operational efficiencies, customer centricity and digital transformation.
“Looking ahead, we remain committed to driving sustainable growth, on delivering value to our customers and ultimately creating long-term value for our stakeholders,” said Ndonye.
The lender’s balance sheet also grew with total assets hitting Sh436.6 billion up from Sh415.2 billion a year earlier.
This was supported by a 13% growth in the loan book which increased to Sh239 billion.
Customer deposits closed at Sh312.3 billion, a 5% increase year on year, largely driven by the growth in deposits from relaunched customer value propositions and enhanced usage of digital channels.
Net Interest Income for the period under review recorded a growth of 10 percent to close at Sh23 billion from Sh21 billion on account of strong growth in the loan portfolio and earnings from Government Securities.
Non-interest income was the largest contributor to the growth, improving by 46 percent to Sh12.7 billion from Sh8.7 billion in 2021.
This was driven by growth in fees and commissions and foreign exchange income.
Loan loss provisions increased by 25% compared to the previous year reflecting the continued pressure in performance for some sectors as well as loan book growth.
The Group’s operating expenses stood at Sh16.1 billion, an increase of 19% year on year on account of completed and new capital investments supporting automation and the digital strategy.
