I&M Group Board of directors has proposed a dividend payout of Kes2.25 per share, translating to Kes3.7 billion for the year ended December 31 2022.
The payout represents a 50 per cent increase recorded in the same period in 2021.
This is after the Group posted a Kes11.6 billion net profit for the full year ended December 31 2022, a 34 per cent growth from the Kes8.6 billion posted in 2021.
The Bank has attributed the improved performance to the continuing successful implementation of its iMara strategy which focuses on business growth, operational efficiencies, and digital transformation.
With good liquidity and a strong capital basis as a foundation, the Group's balance sheet and income metrics increased during the assessment period.
The financial sheet of the Group continuously increased, with total assets rising from Kes415.2 billion to Kes436.6 billion.
A 13% increase in the loan book, which rose to Kes239 billion, provided support for this.
Further, customer deposits reached Kes312.3 billion at year's end, a 5% rise from the previous year. This gain was primarily attributed to the relaunched customer value propositions and increased use of digital channels.
Net interest income for the period under review recorded a growth of 10 per cent to close at Kes23 billion from Kes21 billion in the prior year.
The growth was attributed to strong growth in the loan portfolio and earnings from Government Securities.
Non-interest income increased by 46 per cent to Kes12.7 billion from Kes8.7 billion in the prior year driven by growth in fees and commissions and foreign exchange income.
Additionally, loan loss provisions increased by 25 per cent 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 Kes16.1 billion, an increase of 19 per cent year on year on account of completed and new capital investments supporting automation and the digital strategy.
I&M Group PLC Chairman Daniel Ndonye noted that the strong results posted in 2022 demonstrate the progress the Group is making on its strategic plan to be Eastern Africa’s leading financial partner for growth.
“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 the chairman.
The group’s regional subsidiaries continued to grow, contributing 13 per cent to the overall banking profitability.
