I&M Group closed the year ended 31 December 2025 with net profit up 24% to KSh 19.8 billion, from KSh 15.9 billion a year earlier — driven by a 31% surge in non-interest income, a sharp fall in funding costs, and improving credit quality across all five markets where the group operates.
Profit before tax reached KSh 24.2 billion (+22%), while total revenue grew 19% to KSh 60.3 billion. The board declared a final dividend of KSh 3.75 per share, the fifth consecutive annual increase, bringing total distributions to a record KSh 6.52 billion, up 25% on the KSh 5.02 billion paid in FY2024.
Key Numbers at a Glance
| Metric | FY2024 | FY2025 | Change |
|---|---|---|---|
| Total Assets | KSh 580.9bn | KSh 668.9bn | +15% |
| Customer Deposits | KSh 412.2bn | KSh 483.9bn | +17% |
| Net Loans & Advances | KSh 287.5bn | KSh 306.3bn | +7% |
| Total Operating Income | KSh 50.6bn | KSh 60.3bn | +19% |
| Net Interest Income | KSh 39.6bn | KSh 46.0bn | +16% |
| Non-Interest Income | KSh 11.0bn | KSh 14.4bn | +31% |
| Operating Expenses | KSh 31.7bn | KSh 36.9bn | +16% |
| Profit Before Tax | KSh 19.8bn | KSh 24.2bn | +22% |
| Group Net Profit | KSh 15.9bn | KSh 19.8bn | +24% |
| Earnings Per Share | KSh 8.90 | KSh 10.79 | +21% |
| Dividend Per Share | KSh 3.00 | KSh 3.75 | +25% |
Fees Drive Revenue Beyond Lending
Non-interest income jumped 31% to KSh 14.4 billion, up from KSh 11 billion, with fee and commission income accounting for most of that growth. The mix shift points to deeper transactional relationships with customers rather than a one-off gain.
I&M Bank Kenya, the group’s anchor business, recorded a 41% rise in non-interest income, helping lift its total operating income 22% to KSh 40.4 billion.
Deposits Grow Faster Than Loans
Total assets grew 15% to KSh 668.9 billion. Customer deposits rose 17% to KSh 484 billion, outpacing net loan growth of 7% to KSh 306 billion — a deliberate posture that prioritised funding efficiency over aggressive book expansion.
Operating expenses rose 16% to KSh 36.9 billion, broadly in line with income growth. The cost-to-income ratio held steady, a discipline many regional peers struggled to maintain as inflationary pressures on staff costs and technology investment intensified through 2025.
Asset Quality Improves Across the Board
The gross non-performing loan ratio fell from 14.3% in 2024 to 13.3%. In absolute terms, gross NPLs declined to KSh 31.4 billion, while net NPLs dropped more than a third — from KSh 13.4 billion to KSh 8.9 billion — in a single year.
The improvement reflects tighter underwriting, more active recoveries and a stronger provisioning stance. As legacy problem loans clear, the freed-up capital headroom supports both new lending and shareholder returns.
Capital and Liquidity Well Above Minimums
Total capital reached KSh 118.6 billion. The core capital adequacy ratio stood at 19.0% against a statutory floor of 10.5%, and the liquidity ratio climbed to 59.7%, nearly three times the required 20% minimum.
Regional Units Accelerate
Regional subsidiaries contributed 24% of group results, with several units posting strong growth in local currency terms:
- Rwanda: +24% profit before tax
- Tanzania: +21% profit before tax
- Uganda: +48% profit before tax
- Bank One (Mauritius): +4% profit before tax
Total assets at I&M Bank Uganda grew from UGX 1.1 trillion to UGX 1.4 trillion, a market that has shifted from a subscale operation to a meaningful contributor. The group’s iMara 3.0 strategy — targeting individuals, MSMEs, and sectors driving East African economic growth — appears to be gaining traction simultaneously across multiple geographies.
Five Years of Dividend Growth
Earnings per share rose 21% to KSh 10.79, providing room for further dividend growth in 2026 without straining the payout ratio. Five consecutive years of rising dividends signals that management views the earnings trajectory as durable and that regional diversification is generating returns rather than consuming them.
