I&M Group PLC Delivers Record H1 2025 Results, Driven by Regional Subsidiary Strength

I&M Group PLC reported a record-breaking half-year performance for the period ended 30 June 2025, with profit after tax (PAT) soaring 36.3% year-on-year to KES 8.3 billion, its highest H1 result to date.

This marks a significant leap from KES 6.1 billion in H1 2024, underscoring the Group’s strategic execution and regional diversification.

Earnings per share (EPS) rose 37% to KES 4.51, reflecting enhanced shareholder value and operational efficiency.

Robust Income Growth Across the Board

Net Interest Income surged 23.7% to KES 20.4 billion, supported by a 3.1% increase in total interest income to KES 32.1 billion. This was driven by prudent asset allocation and improved yields across lending portfolios.

Non-Funded Income rose 12.9% to KES 6.9 billion, buoyed by strong performance in fees, commissions, and foreign exchange trading.

Operating Income climbed 21% to KES 27.4 billion, while profit before tax (PBT) jumped 33.3% to KES 11.7 billion.

Strengthening Balance Sheet and Asset Quality

I&M Group’s total assets expanded 4.3% year-on-year to KES 588.9 billion, consolidating its position among Kenya’s top-tier banks. While growth moderated from 12.1% in H1 2024, the Group maintained a resilient balance sheet amid tighter liquidity conditions.

Gross non-performing loans (NPLs) declined slightly by 1.4% to KES 34.4 billion, while net NPLs dropped sharply by 19% to KES 11.9 billion—reflecting improved credit underwriting and recovery efforts.

Loan loss provisions rose 17.4% to KES 4.1 billion, signalling a cautious stance amid evolving credit risks.

Subsidiary Performance: Regional Engines of Growth

The Group’s regional subsidiaries contributed 24% to overall PBT, demonstrating the success of its cross-border strategy. As Regional CEO Kihara Maina noted, “By leveraging cross-market collaboration and investing in digital innovation, we are building a resilient and diversified business that consistently delivers value.”

Kenya (75% of Group PBT)

• PBT: KES 8.2B (+31% YoY)
• Operating Income: KES 18.7B (+21%)
• ROE: 18.5%
• Strong growth in both retail and corporate segments, with 86% digitally active customers and a Net Promoter Score of 77%.

Rwanda (15% of Group PBT)

• PBT: KES 1.6B (+59%)
• Operating Income: KES 3.6B (+4%)
• ROE: 22.5%
• Growth driven by anchor clients in oil & gas, manufacturing, and breweries. CASA ratio remained above 80%.

Tanzania (5% of Group PBT)

• PBT: KES 0.58B (+985%)
• Operating Income: KES 2.5B (+40%)
• ROE: 13.6%
• Boosted by digital loans (Kamilisha), trade finance income, and improved cost of risk.

Uganda (2% of Group PBT)

• PBT: KES 0.21B (+23%)
• Operating Income: KES 1.5B (+3%)
• ROE: 9.8%
• Growth supported by FX income, bond trading, and Mastercard recognition for fastest-growing debit card portfolio.

Mauritius (4% of Group PBT)

• PBT: KES 1.0B (+25%)
• Operating Income: KES 3.06B (+23%)
• ROE: 13%
• Offshore personal and private banking drove asset growth; cost containment and recoveries supported profitability.

Strategic Outlook: Digitization, Ecosystems, and Inclusion

I&M Group continues to invest in digitization, ecosystem partnerships, and inclusive growth. With over 86% of customers digitally active and more than 8.3 million lives impacted—including 7.4 million through ecosystem partners—the Group is scaling its social and financial footprint.

CEO Gul Khan emphasised, “Our half-year results reflect our continued commitment to delivering relevant solutions and a superior customer experience. The strong double-digit growth across both our retail and corporate segments is a testament to the trust our customers place in us.”

Summary Snapshot: H1 2025 vs H1 2024