Companies

I&M posts 15.9pc jump in net profit for six months to June

i&m

I&M Group has registered a 15.9 percent rise in net profit for the six months to June, supported by interest income from loans, and investment in government securities.

The lender registered Sh4.9 billion in net profit in the first half period compared to Sh4.2 billion in the same period in 2021.

It recorded an 18.7 percent rise in net interest income from loans and commissions to Sh10.5 billion from Sh8.9 billion.

The loan portfolio increased by 13 percent to Sh231.1 billion.

“This performance reflects positive underlying trends across the entire business resulting from gains made in implementing our strategy,” said Mr Daniel Ndonye, chairman, I&M Group.

“Our key focus going forward is to accelerate the digital transformation journey through rolling out more innovative solutions and embedding digital channels to ensure that we deliver the value add financial solutions for our customers.”

Non-interest income grew by 28.2 percent to Sh5.0 billion on a 44 percent increase in fees and commissions from transactions through digital channels, and a jump in foreign exchange trading income to Sh1.9 billion from Sh770.3 million in a similar half-year period in 2021. 

The improved performance has also been tied to the continued contribution of its subsidiaries, even as I&M Bank Kenya recorded a profit after tax of Sh3.8 billion, compared to Sh3 billion in June 2021, representing 77.6 percent of the group’s net profit.

I&M Bank Rwanda reported a 29 percent increase in profit after tax for the half year to June driven by increased economic activity leading to growth in loan books by 21 percent.

In Tanzania, I&M recorded a marginal drop in profit after tax to Sh117 million as a result of a 14 percent increase in operating expenses due to investment in technology and additional impairment provisions of Sh70 million.

I&M Bank Uganda reported its first year-on-year results as a member of the group, posting a profit after tax of Sh25 million.

I&M Group completed the acquisition of a 90 percent stake in Uganda’s Orient Bank Limited on 30 April 2021.

The Group’s joint venture, Bank One in Mauritius recorded a profit after tax of Sh411 million for the six months to June 2022 compared to Sh536 million for the same period last year.