I&M Group PLC reported a rise of 44 percent in its consolidated profit after tax at Ksh 2.7 billion compared in the quarter ended March 2022 compared to Ksh 1.9 billion in the same period in 2021.
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%.
The loan portfolio grew by 13% to Kes. 218.4 billion as at 31st March 2022 and Government securities were up by 21%. The net non-performing loans decreased by 31% year on year on the back of the expanded loan book and recoveries.
Customer deposits also closed at Ksh 309.4 billion, an 18% increase year on year.
Net interest income for the period under review recorded a growth of 21% to close at Ksh. 5.2 billion, an increase from Ksh. 4.3 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% increase in fees and commissions and a 76% jump in foreign exchange trading income from Kes 348.5 million in Q1 2021 to Ksh 612.8 million in Q1-2022.
Loan loss provisions were reduced by 37% compared to the previous year on the back of provision releases and recoveries.
Commenting on the results, Mr. Daniel Ndonye, Chairman, I&M Group PLC, said, “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.
“Our continued investment in our group-wide digital transformation, as well as ongoing strategic partnerships, have continued to give value to our customers,” Mr. Ndonye noted.
“We maintain a BUY recommendation on the bank given that the share price has continued declining while our fair value estimate of Ksh 25.70 has remained constant due to our forecasts materializing which represents a 46.9% upside from a closing share price of Ksh17.50 (23rd May 2022),” Sterling Capital Research.
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