I&M Group PLC increased its operating income by 23 per cent Sh19.1 billion in the first half of 2023, up from Sh15.6 billion in the same period in 2022.
The operating income was boosted by growth in both corporate and retail segments which posted 29 per cent and 28 year-on-year growth, respectively.
The tier 1 lender recorded strong operating revenues across its markets, with regional businesses contributing 27 per cent to its revenue.
I&M group executive director, Sarit Raja-Shah, said the group’s operating expenses, exclusive of loan loss provisions, stood at Sh9.3 billion, an increase of 28 per cent year-on-year.
“The group has ensured adequate funding and sufficient capital buffers to uphold the present growth momentum,” said Raja-Shah.
According to the director, the rise in the Non-Performing Loan book and provisions reflects a cautious approach to portfolio management, amid a challenging business environment.
“As we move ahead, the group's emphasis remains on expanding our portfolio and enabling our customers to achieve their business goals,” he added.
In the period under review, the group’s balance sheet grew steadily, with total assets crossing the Sh500 Billion mark, increasing by 17 per cent over the same period in 2022.
The loan portfolio grew by 17 per cent to reach Sh270 billion, partly attributable to retail lending through the group’s digital platforms, despite the challenging macro-economic conditions across most of its markets.
Customer deposits closed at Sh357 billion, a 14 per cent increase year-on-year, during the period as the group continued focusing on product innovation and digitisation.
Net Non-Performing Loans stood at Sh10 billion, a reflection of the challenging macro-economic environment.
The group’s operating income recorded a strong growth of 23 per cent.
The overall profit declined marginally by two per cent to Sh7 billion, amid an increase in loan loss provisions, as the group maintained prudence.
Growth in operating income was driven by a growth of 16 per cent in net interest income and 37 per cent in non-interest income for the period under review.
I&M Bank Kenya posted an operating income growth of 20 per cent year- on-year.
The local subsidiary also posted 17 per cent increase in operating profit and a six per cent decline in profit before tax, due to higher loan loss provisions.
“In the first half of the year, our focus centered on providing relevant financial solutions designed for Kenyans,"said I&M Bank Kenya CEO Gul Khan.
This included waiving of bank to mobile wallet charges with the Ni Sare Kabisa campaign to cushion Kenyans against the high cost of living.
