I&M bank posts KES 2.7 billion in net profit

By Victor MUJIDU

I&M Bank Monday announced its first quarter profit after tax of KES 2.7 billion.

During the quarter, the bank’s total assets grew by 9.7% to reach KES 472.6 billion loans and advances growing at 18% to KES 257.7 billion.

I&M bank Monday announced a 29% growth in total operating income at KES 9.6 billion for the first quarter (Q1) of 2023 up from the KES 7.4 billion reported during the same period in 2022.

The lender attributed the growth to strong liquidity and a solid capital base.

Balance sheet highlights

The Group’s balance sheet grew steadily with total assets increasing by KES 41.4 billion to KES 472.6 billion.

The loan portfolio grew by 18% to KES 257.7 billion partly attributed to the extension of retail lending through the Bank’s digital platforms.

The net non-performing loans stood at KES 10 billion, a reflection of the challenging macro-economic environment.

Customer deposits closed at KES 324.7 billion, a 5% increase year on year, largely attributed to growth in CASA (Current Accounts and Savings Accounts).

Income statement highlights

While the operating income recorded a strong growth of 29%, the Group’s profitability was flat due to the growth in both expenses and provisions.

Growth in total operating income was driven by 17% and 59% growth in Net interest income and non-interest income respectively for the period under review on account of growth in fees, commissions, foreign exchange income as well as interest from the loan portfolio and earnings from government securities.

The Group’s operating expenses exclusive of loan loss provisions stood at KES 4.4 billion, an increase of 30% year on year on account of continued investment in technology and people across each of the jurisdictions. The cost to income ratio increased marginally from 45% to 46%.

Mr. Sarit Raja Shah, Group Executive Director, I&M Group PLC, noted: “This first quarter posed its own challenges amidst rising inflation and the high cost of doing business.

Our continued investments in the group-wide iMara 2.0 strategy that focuses on customer centricity and digital transformation as well as the on-going strategic partnerships, have continued to give value to our customers and stakeholders. We look forward to a continued positive trajectory in the coming quarters,” said Mr. Shah.