GROWTH

I&M three-month profit up 44% to Sh2.7b

In the same period last year the Group posted profit after tax of Sh1.9 billion.

ACQUISITION: I&M Bank Tower along Kenyatta Avenue. The bank has acquired Giro bank./FILE
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In Summary

•The Group’s Rwandan subsidiary reported a 19 per cent increase in profit after tax for the period in review.

•This increased the Bank’s return on equity (ROE) and return on asset (ROA) to 12.14 per cent and 1.61 per cent respectively.

I&M Group PLC has posted a  Sh2.7 billion net profit in the first three months of the year, a 44 per cent growth compared to the same period last year.

The lender has attributed the growth to a solid capital base and strong liquidity with its total assets growing by 18 per cent in the period under review.

 “We are recovering from the impacts of the pandemic, and this is a key factor in the positive sentiment being shown across the sector," I&M Bank chairman Daniel Ndonye said.

The loan portfolio grew by 13 per cent to Sh218.4 billion and government securities were up by 21 per cent.

The lender’s net non-performing loans on the other hand decreased by 31 per cent year on year on the back of the expanded loan book and recoveries.

Customer deposits closed at Sh309.4 billion, an 18 per cent increase year on year.

Net interest income for the period under review recorded a growth of 21 per cent to close at Sh5.2 billion, an increase from Sh4.3 billion in March 2021 on account of improved earnings on loans and advances as well as from government securities.

The strong growth in non-interest income was driven by a 20 per cent increase in fees and commissions and a 76 per cent jump in foreign exchange trading income from Sh348.5 million in Q1 2021 to Sh612.8 million in Q1-2022. 

Loan loss provisions reduced by 37 per cent compared to the previous year on the back of provision releases and recoveries.

 “Our continued investment in our group-wide digital transformation, as well as on-going strategic partnerships have continued to give value to our customers,” Ndonye said. 

The Group’s Rwanda subsidiary reported a 19 per cent increase in profit after tax for the period in review.

I&M Bank Tanzania recorded a profit after tax of Sh71 million compared to Sh62 million in March 2021 reflecting a 13 per cent year on year growth.

I&M Bank Uganda returned to profitability with a profit after tax of Sh405 million.

The Group’s Joint venture, Bank One, Mauritius recorded a 44 per cent profit after tax year on year growth driven by reduction in loan loss provisions, increase in recoveries and interest income growth by 4 per cent.

The Group’s executive director, Sarit Raja Shah is positive for the Bank’s performance in the rest of 2022, amidst the looming impact of the upcoming elections in Kenya as well as the ongoing geo-political tensions in Russia and Ukraine.