I&M to accelerate the digital shift after posting 16 percent profit
Nairobi. I&M Group has registered a 15.9 percent rise in net profit for the six months to June, supported by interest income from loans, and investment in government securities.
The lender registered Ksh4.9 billion compared to Ksh4.2 billion in the same period in 2021.
The bank recorded an 18.7 percent rise in net interest income from loans and commissions to Ksh10.5 billion from Ksh8.9 billion.
The loan portfolio increased by 13 percent to Ksh231.1 billion.
“This performance reflects positive underlying trends across the entire business resulting from gains made in implementing our strategy,” said Mr Daniel Ndonye (pictured), chairman, I&M Group.
“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.”
Non-interest income grew by 28.2 percent to Ksh5.0 billion on a 44 percent increase in fees and commissions from transactions through digital channels, and a jump in foreign exchange trading income to Ksh1.9 billion from Ksh770.3 million in a similar half-year period in 2021.
The improved performance has also been tied to the continued contribution of its subsidiaries, even as I&M Bank Kenya recorded a profit after tax of Ksh3.8 billion, compared to Ksh3 billion in June 2021, representing 77.6 percent of the group’s net profit.
I&M Bank Rwanda reported a 29 percent increase in profit after tax for the half year to June driven by increased economic activity leading to growth in loan books by 21 percent.
In Tanzania, I&M recorded a marginal drop in profit after tax to Ksh117 million (about Tsh2.25 billion) as a result of a 14 percent increase in operating expenses due to investment in technology and additional impairment provisions of Ksh70 million (about Tsh1.3 billion).
I&M Group completed the acquisition of a 90 percent stake in Uganda’s Orient Bank Limited on 30 April 2021.
The Group’s joint venture, Bank One in Mauritius recorded a profit after tax of Ksh411 million for the six months to June 2022 compared to Ksh536 million for the same period last year.
