I&M Bank pretax profit rises to Sh5.73bn

March 26, 2013
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Group customer loans increased by 32 percent to reach Sh87.8 billion while customer deposits increased by 31.1 percent to Sh111.7 billion/FILE
Group customer loans increased by 32 percent to reach Sh87.8 billion while customer deposits increased by 31.1 percent to Sh111.7 billion/FILE
NAIROBI, Kenya, Mar 26 – The I&M Bank has announced growth in profit before tax from Sh4.95 billion to Sh5.73 billion as well as an increase of 34 percent in total assets to Sh144.7 billion, citing the gains of the regional expansion strategy.

Group customer loans increased by 32 percent to reach Sh87.8 billion while customer deposits increased by 31.1 percent to Sh111.7 billion.

The bank’s group assets were bolstered by the addition of Banque Commerciale Du Rwanda in early 2012, as well as good growth by I&M Bank, Tanzania.

Announcing the results, the bank’s Executive Director Sarit Shah said: ”Our investments in the region have given us excellent momentum, not just in terms of balance sheet growth and profitability, but also in term of the span and range of services that we are offering to our customers across the region.”

Bank One Ltd, I&M Bank’s joint venture investment in Mauritius, also returned good results, resulting in a 69 percent growth in dividend income for the group to Sh103 million.

The Kenyan operations of the bank achieved a profit before tax of Sh4.7 billion reflecting a six percent growth over 2011 as total assets grew by 19 percent to Sh91.5 billion.

A challenging interest rate environment affected the interest rate spread in Kenya resulting in the modest profitability growth and the quality of the lending book continued to improve with total nonperforming assets reducing by 28 percent to Sh490 million.

At the same time the bank continued to maintain outstanding operational efficiency with an efficiency ratio of 34:3, making it one of the lowest in the Kenyan banking industry.

The bank’s CEO Arun Mathur also added: ”While the prevailing high interest rates in 2012 posed some challenges for us in Kenya, we were able to sustain our performance through prudent management of our customer portfolio and as we look ahead, 2013 appears very promising as the interest and exchange rates scenarios have stabilised and the investment outlook is very positive.”

During 2012, I&M Bank expanded its off-site ATM network and opened a new branch in Kisii.

Continuing its technological product innovation initiatives, the Bank launched I-Click internet banking for retail and corporates – a product that has outstanding features that makes it a unique alternate channel banking experience.

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