Lending boom lifts I&M Bank profit to 20bn/-
DAR ES SALAAM: I&M Bank Tanzania’s net profit has increased by 32.2 per cent for the year ending last December, driven largely by a robust growth in net interest income.
The lender’s financial statements released yesterday show profit rose to 20bn/- at the end of last year from 15.1bn/- recorded in the preceding year, underscoring improved core earnings performance.
The bank, with a total asset stood at over 953bn/- as of December 31 last year attributed the impressive performance to a significant rise in net interest income.
The financial statement released shows net interest income increased by 30.1 per cent to 86bn/- up from 66.7bn/- recorded in a similar period in 2024.
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The increase is attributed to an expansion in lending, with total loans issued rising sharply to 527.9bn/- at the end of the year from 435bn/- in the previous year, equivalent to 21.3 per cent yearon-year growth.
Additionally, I&M bank’s non-interest income also jumped by 41.5 per cent reaching 31.7bn/- during the year from 22.4bn/- recorded in the same period of the preceding year. The surge in non-interest income was mainly due to the increment in both foreign currency dealings and translation gains plus fees and commissions.
The report shows foreign currency dealings and translation gains increased to 8.43bn/- at the end of December last year from 7.73bn/- posted in the same period in 2024 while fees and commissions also soared to 8.58bn/- from 7.63bn/-. In addition, the lender’s customer deposits increased to 693bn/- at the end of the year against 597bn/- recorded in the same period previously, signalling growing customer confidence.
Meanwhile, non-performing loans (NPLs) significantly dropped by 39.9 per cent to 22.5bn/- down compared to 37.6bn/- recorded in 2024, resulting to a sharp decrease of its NPLs ratio to 4.03 per cent versus 8.41 per cent posted in 2024, remaining well below the Bank of Tanzania (BoT) benchmark of 5.0 per cent.
