NAIROBI, Kenya, Aug 30 – Regional Financial Services Group, I&M Group PLC has posted 33 percent profit after tax for its 2021 half-year financial results after making Sh4.2bn up from Sh3.2bn.
The Group’s Total Assets recorded a growth of 12percent from Kshs 338 billion reported in June 2020.
Daniel Ndonye, I&M Group Chairman attributed the improved performance to the bank’s increased lending to both the private and the public sector
“This is on the back of strong capital and liquidity base at group and country levels reported all well above regulatory minimums. At Group level, capital adequacy ratios closed at 21% at the same level as the previous year, while liquidity ratio was 48 percent well above the statutory minimum of 20 percej6,” Ndonye said.
He said the growth was also bolstered by the firm’s expansion into Uganda and increased private and public sector lending.
“The acquisition of Orient Bank Ltd (OBL) in Uganda has expanded the Group’s balance sheet by UGX 753 billion as at the reporting date,” the firm said in a statement.
Increased interest income from government securities contributed to the growth of the firm’s net interest income which rose by 28 percent while customer deposits rose by 10 percent from Kshs 251 billion reported in June 2020.
Nonetheless, the Group’s total Non-Funded Income reduced by 6 percent to UGX 124.9 billion while the Net non-performing loans reduced by 8% and were attributed to strengthened remedial actions in improving the loan book quality.
During the period under review, the Group finalized the acquisition of a 90 percent shareholding in Uganda’s OBL as part of the group’s regional broader strategy.
“We will continue to focus on our customers across all the banking segments through a series of products and innovations that are tailored to enhance customers’ banking experience across all our subsidiaries,” ndonye added.