I&M holdings has posted a 21% drop in net profit for the year ended 31st December 2020. The bank’s profit after tax decreased to KSh8.4 billion in 2020 from KSh10.8 billion in 2019 as the covid19 pandemic negatively impacted the bank’s profitability.
In the past year, I&M put aside KSh2.5 billion to cover expected loan losses linked to the pandemic, up from KSh636.5 million set aside in 2019.
I&M successfully acquired 90% ownership in Ugandan based Orient Bank at KSh3.6 billion last year.
The lender’s revenue from interest income and non-interest income increased by 1.3% to KSh19.4 billion at the end of last year, compared to KSh19.2 billion revenue at the end of 2019. Customer deposits grew by 14% to KSh262.7 billion from KSh229.7 billion a year earlier. I&M issued more loans and advances to customers as the value of loans jumped to KSh187.4 billion from KSh175.3 billion in 2019, a 7% increase.
In the 12 months period, the bank’s total assets rose to KSh358 billion from KSh315 billion while total liabilities increased to KSh290 billion from KSh254 billion the year before.
I&M board of directors has proposed a dividend of KSh2.25 per share for the year 2020 and a bonus issue of one bonus share for every ordinary share to be issued to shareholders on the firm’s register at the close of business on 10th May 2021.
Data from Hisa App shows that the company’s shares rose by over 23% during the early hours of trading at the Nairobi Securities Exchange on the back of the dividend and bonus issue announcement.
The bonus issue is subject to approval from shareholders and the Capital Markets Authority.