I&M Group Plc posted a KSh4.9 billion half-year net profit which translates to a 16 per cent rise from KSh4.2 billion posted in the same period in 2021.
The lender attributed the rise to a 21.9 per cent jump in total operating income to KSh15.6 billion from KSh12.8 billion.
“This performance reflects positive underlying trends across the entire business resulting from gains made in implementing our iMara 2.0 strategy.” Mr Daniel Ndonye, Chairman, I&M Group Plc noted.
“Our key focus going forward is to accelerate the digital transformation journey through rolling out more innovative solutions and embedding digital channels to ensure that we deliver the value add financial solutions for our customers.”
Balance sheet highlights
- The Group’s total assets grew by 15% to Ksh 440 billion, up from Ksh 382 billion in June 2021.
- The loan portfolio increased by 13% to Ksh 231 billion, while investments in government securities were up by 17%.
- The net non-performing loans stood at 2.3%, decreasing by 31% year on year on the back of increases in the loan book and recoveries.
- Customer deposits closed at Ksh 313 billion, a 13% increase year on year.
Income statement highlights
- Net interest income for the period under review recorded a growth of 19%, closing at Ksh 10.5 billion, an increase from Ksh8.9 billion in June 2021, reflecting improved earnings on loans, advances, and government securities.
- The strong growth in non-interest income was driven by a 44% increase in fees and commissions and a jump in foreign exchange trading income from Ksh 770 million in HY 2021 to Ksh 1.9 billion.
- Loan loss provisions increased by 24% compared to the previous year as the Group remained prudent on credit risk provisioning.
I&M Bank Kenya recorded a profit after tax of Sh3.8 billion, compared to Sh3 billion in June 2021, representing 77.6 per cent of the group’s net profit.
I&M Bank Rwanda reported a 29 per cent increase in profit after tax for the half year to June, driven by increased economic activity leading to growth in loan books by 21 per cent.
In Tanzania, I&M recorded a marginal drop in profit after tax to KSh117 million due to a 14 per cent increase in operating expenses due to investment in technology and additional impairment provisions of Sh70 million.
I&M Bank Uganda reported its first year-on-year results as a group member, posting a profit after tax of KSh25 million.
The Group’s joint venture, Bank One in Mauritius, recorded a profit after tax of Sh411 million for the six months to June 2022 compared to Sh536 million for the same period last year.
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