I&M Holdings has reported a growth in net profit for the year ending December 2018 to Sh8.5 billion from Sh7.3 billion recorded the year before, largely driven by growth in non-interest income and lower loss provisions.
The NSE-listed bank recorded non-interest income growth of 31.58 percent or the equivalent of Sh1.8 billion to Sh7.5 billion on improved fees, commissions on loans and advances and foreign exchange trading earnings.
The group’s total interest income also grew by 6.15 percent to Sh25.9 billion, amplified by revenue from loans and advances which grew 9.57 percent to Sh20.6 billion.
However, income from government securities decreased to Sh4.96 billion from Sh5.36b recorded in 2017.
I&M cut loan loss provision by 8.21 percent to Sh3.81 billion from Sh4.14 billion in 2017 even as its gross non-performing loans increased by 22.68 percent to Sh23.83billion. The lender's loan book grew to Sh166.73 billion, from Sh153.08 billion recorded during the previous period.
The bank’s directors did not recommend the payment of a final dividend for the year. The lender had earlier declared an interim dividend of Sh3.90 per share for the year amounting to Sh1.61 billion. In 2017, it paid out a final dividend of Sh3.50 per share amounting to Sh1.44 billion.
I&M joins the growing list of other banks that have declared growth in profits during the financial year ending December 31, 2018.
Earlier on Tuesday, Equity Bank maintained its position as Kenya’s second-most-profitable lender as strong growth in income from government securities lifted its net profit by five percent to Sh19.8 billion for the year ending December 2018.
KCB remains Kenya’s most profitable lender having raised its net earnings by 21.8 percent to Sh24 billion last year, while Co-operative Bank was third in the profit race with an 11.6 percent jump in earnings to Sh12.7 billion.