Nairobi Securities Exchange-listed banking group I&M Holdings has reported a 17 percent growth in its half-year net profit driven by increased non-interest income.
I&M recorded after-tax earnings of Sh4.23 billion for the period ended June 2019 compared to Sh3.87 billion for a similar period in 2018.
Non-interest income, which included fees and commissions from loans and advances, foreign exchange income and dividend income, increased 22 percent to Sh4.54 billion.
The lender’s interest income also grew by 8 percent to Sh12.68 billion from Sh11.65 billion largely due to increased returns on loans and advances to customers.
The group also cut its loan provision by 21 percent even as the gross non-performing loans increased to Sh24.4 billion from Sh22.36 billion. The total non-performing loans (gross non-performing loans less interest in suspense) reduced.
The lender also saw a 12.5 percent increase in customer deposits of Sh26.34 billion to Sh237.24 billion.
The lender did, however register an 18 percent increase in interest expenses, which includes customer deposits and deposits and placements from banking institutions. This amount increased to Sh5.67 billion from Sh4.79 billion.
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