NAIROBI, Kenya, May 23 – I&M Group profit after tax grew by 33.3 percent to Sh3.6 billion in the three months to March this year compared to a similar period on improved interest and operating revenues.
In a similar period in January and March 2023, the lender’s profit stood at Sh2.7 billion.
Loans and advances, which grew by Sh11.4 billion and Sh7.2 billion, respectively, pushed total interest income to Sh15.6 billion, representing a 52.9 percent jump.
Government securities’ interest income grew from Sh2.7 billion to Sh3.3 billion, mainly driven by margin expansions due to a decline in holdings.
Similarly, operating income went up 19.8 percent to Sh11.5 billion, representing a 19.8 percent jump.
The lender says the growth has primarily been driven by growth in the corporate and retail segments, which saw increases of 58 percent and 33 percent, respectively.
Its CEO, Gul Khan, asserted that the growth was due to the lender’s goals, anchored on the provision of seamless services to its customers.
“We are pleased to record an impressive double-digit growth in profit in our first quarter of the year. Our focus on offering relevant financial solutions for Kenyans like free bank to M-PESA transactions to individuals and sole proprietors, strategic branch expansion and ecosystem partnerships has yielded results as demonstrated by our customer numbers and increase in deposits,” Khan said.
Likewise, the group’s balance sheet grew by 13 percent over the same period to close at Sh533 billion, with customer deposits also expanding by 18 percent to Sh384 billion year on year.
On the flip side, its net non-performing loans stood at Sh14 billion, which the lender has attributed to a challenging macro-economic environment.
It seeks to leverage technology to further bolster its profitability on an array of sectors, including its loan portfolio.
