NAIROBI, Kenya May 24-I&M Group PLC has reported a Sh2.7billion net profit for the first quarter of 2022, a 44 per cent growth compared to Sh1.9 billion in the same period in 2021.
During the period under review, the Group’s balance sheet and income metrics improved on the backdrop of a solid capital base and strong liquidity.
The Group’s balance sheet grew steadily with total assets growing by 18 per cent.
Net interest income for the period under review recorded a growth of 21 per cent to close at Sh5.2 billion, an increase from Sh4.3 billion in March 2021 on account of improved earnings on loans and advances as well as from government securities.
The strong growth in non-interest income was driven by a 20 per cent increase in fees and commissions and a 76 per cent jump in foreign exchange trading income from Sh348.5million in Q1 2021 to Sh612.8 million in Q1-2022.
“We are recovering from the impacts of the pandemic, and this is a key factor in the positive sentiment being shown across the sector. Though the calendar year 2021 posed its own challenges, our investments in digital infrastructure and customer value propositions have continued to put us on a positive trajectory,” said Daniel Ndonye, Chairman, I&M Group PLC.
Further, during the period the Group’s loan portfolio grew by 13 per cent to Sh218.4 billion as at March 31 2022, as net non-performing loans decreased by 31 per cent year on year on the back of the expanded loan book and recoveries.
Loan loss provisions reduced by 37 per cent compared to the previous year on the back of provision releases and recoveries.
Customer deposits closed at Sh309.4 billion, an 18 per cent increase year on year
The Group’s Rwandan subsidiary reported a 19 per cent increase in profit after tax for the period in review.
This increased the Bank’s return on equity (ROE) and return on asset (ROA) to 12.14 per cent and 1.61 per cent respectively.
The Bank’s strong performance was driven by increased economic activity, with loans and deposits growing by 11 per cent and 3 per cent respectively, which led to growth in net interest income and net fee income.
I&M Bank Tanzania recorded a profit after tax of Sh71 million compared to Sh62 million in March 2021 reflecting a 13 per cent year-on-year growth.
The performance was driven by a growth in net interest income and non-funded income by 27 per cent and 14 per cent respectively. The balance sheet grew by 9 per cent to close at Sh28.7 billion.
Further I&M Bank Uganda returned to profitability with a profit after tax of Sh405 million.
This was aided by an increase in operating income which grew by 30 per cent, reduced loan loss provisions and increase in recoveries. The balance sheet reported a 15 per cent year-on-year growth to close at Sh24.6 billion.
The Group’s Joint venture, Bank One, Mauritius recorded a 44 per cent growth in net profit year on year growth driven by reduction in loan loss provisions, increase in recoveries and interest income growth.
The Group’s Executive Director, Mr. Sarit Raja Shah is positive for the Bank’s performance in the rest of 2022, amidst the looming impact of the upcoming elections in Kenya as well as the ongoing geo-political tensions in Russia and Ukraine.
“We have had good momentum since the start of the calendar year and we remain optimistic that it shall continue despite both local and international geo-political factors. We remain confident that our rollout of our iMara 2.0 strategy will continue to bear fruit for us,” said Shah.
