I&M receives dividend of Sh227m from Mauritius’ subsidiary

Companies

I&M receives dividend of Sh227m from Mauritius’ subsidiary


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I&M Department on Kenyatta Avenue, Nairobi. PHOTO PHOTO | NMG

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Summary

  • I&M Group has received a dividend of Sh227 million from its Mauritian subsidiary Bank One, with the cash set to contribute to the group’s total earnings this year.
  • I & M’s share of the dividend is equivalent to Sh227 million based on current exchange rates.
  • Bank One made a net profit of MUR413 million (Sh1.1 billion) in the year ending December, reversing a net loss of MUR492 million (Sh1.3 billion) a year earlier.

I&M Group #ticker: IMH has received a dividend of Sh227 million from its Mauritian subsidiary Bank One, with the cash set to contribute to the group’s total earnings this year.

The dividend was paid in January, according to information from Bank One, which is owned on a 50/50 basis by the Nairobi Securities Exchange #ticker: NSE-listed company and the island nation’s conglomerate CIEL Limited.

“According to the board meeting held on November 24, 2021, a temporary dividend of 168 million Mauritian rupees (Sh454 million) was approved for distribution as a dividend to shareholders,” Bank One said in its latest annual report.

“But since the approval from the Bank of Mauritius was received in January 2022, the bank has continued with the distribution in January 2022.”

I & M’s share of the dividend is equivalent to Sh227 million based on current exchange rates. The payout, which marked a return to dividend distributions, came after the subsidiary recovered from losses in 2020, mainly due to the impact of the Covid-19 pandemic.

Bank One made a net profit of MUR413 million (Sh1.1 billion) in the year ending December, reversing a net loss of MUR492 million (Sh1.3 billion) a year earlier.

The subsidiary’s profit during the period under review led I & M to post an income of Sh549 million from its share of the joint venture, which came out of the loss of Sh679 million, which it soaked up the year before.

“Bank 1 came back during the year due to bad debt recovery,” I&M said when announcing its results for the year ending December.

I&M and CIEL invested a further Sh793 million in the Mauritian entity in 2020 to strengthen its capital position in the wake of the pandemic, which increased the credit risk for banks worldwide.

The new equity was supplemented with loans of DKK 1.5 billion.

Improved profitability at Bank One saw the subsidiary return to pay dividends, which it had suspended in 2020. The lender had paid a dividend of MUR138 million (Sh373 million) in 2019.

The subsidiary’s result in the year ending December was helped by a reversal of credit write-downs in the previous year.

“Misleading loans were managed significantly down during the year, from around nine per cent in 2020 to just over three per cent in the financial year. A great achievement in very difficult trading conditions, ”said Bank One.

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