I&M Group profit up 16pc

I&M Group Plc has sustained its growth momentum into the first half of this year, with the Group reporting a 16 per cent growth in profit after tax to Kes4.9 billion compared to Kes4.2 billion in the same period in last year.

During the period under review, the Group’s balance sheet and income improved while strong liquidity and a solid capital base were maintained.

The Group’s total assets grew by 15 per cent to Kes440 billion, up from Kes382 billion in June last year.

The loan portfolio increased by 13 per cent to Kes231 billion, while investments in government securities were up by 17 per cent.

The net non-performing loans stood at 2.3 per cent, decreasing by 31 per cent year on year on the back of increases in the loan book and recoveries.

Customer deposits closed at Kes.313 billion, a 13 per cent increase year on year.

Net interest income for the period under review recorded a growth of 19 per cent, closing at Kes10.5 billion, an increase from Kes8.9 billion in June last year, reflecting improved earnings on loans and advances as well as government securities.

The strong growth in non-interest income was driven by a 44 per cent increase in fees and commissions and a jump in foreign exchange trading income from Kes770 million in HY 2021 to Kes1.9 billion.

Loan loss provisions increased by 24 per cent compared to the previous year as the Group remained prudent on credit risk provisioning.

Commenting on the results, Mr. Daniel Ndonye, Chairman, I&M Group PLC, noted:

“This performance reflects positive underlying trends across the entire business resulting from gains made in implementing our iMara 2.0 strategy.” Ndonye added,

“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-added financial solutions for our customers’.

In Tanzania I&M recorded a marginal drop in profit after tax to Tsh 2.4 billion, (Kes 117 Million) compared to Tsh. 2.5 billion (Kes 116.9 million) in June 2021, reflecting an increase of 14 per cent in operating expenses due to investment in technology and additional impairment provisions of Tsh 1.4 billion (Kes 70 million).

The balance sheet grew by 9 per cent to close at Tsh613 billion. (Kes 31 billion).