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I&M Group’s net profit for the financial year ended December 2023 grew 12.7 percent to Sh12.62 billion.
The review period saw I&M’s net interest income rise 24.8 percent to Sh28.6 billion as the loan book grew to Sh311.3 billion from Sh238.59 billion.
Non-interest income was up 10.4 percent to Sh14.05 billion, adding to the growth in operating income.
Operating expenses, however, grew by 27.5 percent to Sh27.2 billion from Sh21.3 billion, mainly on the back of increased provisioning for loan defaults and a surge in staff costs.
Loan loss provisioning rose by 31 percent to Sh6.87 billion to reflect economic difficulties that were facing borrowers as interest rates rose while the rise in staff costs by 15.5 percent to Sh7.48 billion was fuelled by the hiring of new workers as it opened new branches.
“The increase that we see in the non-performing loan really is the reflection of the difficult macroeconomic environment that we have seen particularly here in Kenya,” said Kihara Maina, I&M Group regional CEO.
As a result, the lender has increased dividends for the third straight year to Sh2.55 per share amounting to Sh4.22 billion. The proposed dividend per share is a rise from Sh2.25 per share or a total of Sh3.72 billion paid a year earlier. The latest payout equals the per-share distribution that was made by I&M in 2019.