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I&M Bank to pay dividend bonus for the first time

In Summary

• I&M Shareholders will earn Sh4.90 in total dividend per share approval of both the company’s board and Capital Market Authority (CMA).

• The lender has reported 15.9 per cent growth in net profit for year ended December 2018.

ACQUISITION: I&M Bank Tower along Kenyatta Avenue. The bank has acquired Giro bank./FILE
ACQUISITION: I&M Bank Tower along Kenyatta Avenue. The bank has acquired Giro bank./FILE

Shareholders of the banking service group, I&M Holdings Plc will for the first time will earn a bonus dividend  since the bank was formed in 1974.

The Sh1 per share value will be in addition to the proposed dividend per share of Sh3.90 declared by the bank yesterday when it reported a 15.9 per cent growth in net profit for the year ended December 31, 2018.

The Nairobi Securities Exchange listed lender recorded a net profit of Sh6.63 billion for the year under review compared to Sh5.72 billion in 2017.

"The board has resolved to recommend the issuance of bonus share of one paid up bonus share of a par value Sh1 for every ordinary share of par value Sh1 to be issued to shareholders at the close of business on May 29,’’ I&M chairman Daniel Ndonye said in a statement.

The bank has declared an interim dividend of Sh3.90 per share, totalling to Sh1.6 billion up from Sh3.50per share or a total of Sh1.44 billion in 2017.

I&M Shareholders will earn Sh4.90 in total dividend per share subject to approval of the board and Capital Market Authority.

The bank will therefore have the second highest dividend offer compared to its peers who have since announced results.

On Tuesday, Equity declared a final dividend payout of Sh0.50 per share. Others are KCB Group Sh1, Cooperative Bank Sh0.80 and Barclays Bank Kenya Sh0.90 per share.

Stanbic Bank leads the pack with dividend payout of Sh5.80 per share.

I&M which has operations in Kenya, Mauritius, Rwanda and Tanzania attributed the growth in profits to good returns on investment from new diversified products.

‘’The group reaped early from the benefits of our corporate strategy. Our revenue has gradually decreased its reliance on funded income and has witnessed the Bank’s resilience against environmental adversity,’’ I&M Bank chief executive Kihara Maina said.

The bank’s total assets recorded a growth of 20.16 per cent to close at Sh 288.5 billion up from Sh240.1 billion.