I&M Group PLC has grown net earnings for the first six months of the year to Sh6.1 billion from Sh5.03 billion reported in a similar period last year.
This is after its gross profits rose by 34 per cent to Sh8.7 billion, driven by by significant growth in the corporate and retail segments, which saw increases of 49 and 34 per cent respectively.
The Tier 1 Bank reported strong operating revenues across all its markets, with regional businesses accounting for 26 per cent of the gross earnings.
According to results released on Wednesday, the Group’s balance sheet grew steadily, with total assets increasing by 12per cent over the same period in 2023 to close at Sh564 billion.
The loan portfolio grew by five during the period under review to reach Sh284 billion in line with the group’s growth strategy for retail lending and growth in the subsidiary balance sheets.
Customer deposits closed at Sh419 billion, an 18per cent increase year on year as the Group continued focusing on product innovation and digitization.
The net non-performing loans stood at Sh15 billion from Sh18.4 billion in the prior year.
Operating income recorded a growth of 19 per cent for the period under review, driven by a 35 per cent increase in Net Interest Income while the Group’s operating profitability increased by 21 per cent year on year to Sh11.9 billion.
Loan loss provisions closed at Sh3.5 billion up from Sh3.2 billion in the same period last year as the Group maintained prudence in asset quality management.
The Group’s operating expenses, exclusive of loan loss provisions, recorded an increase of 16 per cent year on year to close at Sh10.8 billion driven by continued investment in technology and people across all markets.
“We are pleased to record an impressive growth of 21 per cent in Profit Before Tax in our first half of the year,” I&M CEO Gul Khan said.
“Our focus on offering relevant financial solutions for Kenyans like free bank to M-Pesa & Airtel Money transactions to individuals and Solo Biz owners, strategic branch expansion, and ecosystem partnerships has resulted in significant growth in our customer numbers.”
Regional subsidiaries continued to grow steadily, with operating income contribution increasing to 30 from 28 per cent in 2023.
During the period, 83per cent of I&M Group customers across the region were digitally active.
I&M Rwanda reported a 37 per cent increase in operating income and a strong 59 per cent increase in Profit Before Tax for the period under review.
The Bank’s strong performance was driven by increased economic activity in the region, with loans and deposits growing by 17 and 34 per cent respectively, which led to growth in Net Interest Income and Non-Funded Income.
In Tanzania, I&M recorded a 25 per cent increase in operating income to close at Sh1.8 billion and a 50 per cent increase in operating profit on the back of recoveries, a testament to a focused approach to managing asset quality.
The Kenya shilling equivalent total assets and loans and advances showed a decline of three and six per cent respectively.
I&M Uganda posted strong growth in operating income of 22% and operating profit growth of 54 per cent.
Total assets reported a four per cent year-on-year growth to close at Sh 34 billion, with growth in the loan and deposit book at three and seven per cent respectively.
The Group’s Joint Venture investment in Mauritius, Bank One, recorded a growth of 23 per cent in operating income year on year.
Total Assets and net loans & advances declined by 1 and five per cent (local currency up by 12 and three per cent) respectively while customer deposits increased by four (18 per cent in local currency).
I&M Group regional CEO Kihara Maina said that the bank’s strategic focus on innovation, customer-centric solutions, and market expansion was paying off.
“This growth is about building a resilient and inclusive future, where our customers and the communities we serve, experience a positive impact.”
