I&M Group Reports Ksh 6.1 Billion Profit in First Half of 2024

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I&M Group recorded a Ksh 6.1 billion in profit after tax for the first half of 2024, a 21.1% increase from the Ksh 5 billion posted in H1 2023.

I&M Group Reports Ksh 6.1 Billion Profit in First Half of 2024

“We are pleased to record an impressive growth of 21% in Profit before Tax in our first half of the year. Our focus on offering relevant financial solutions for Kenyans like free bank to M-PESA & Airtel Money transactions to individuals and Solo Biz owners, strategic branch expansion and ecosystem partnerships has resulted in significant growth in our customer numbers and increase in deposit balances,” Mr. Gul Khan, I&M Bank CEO said.

Customer loans grew by 5.3% year-on-year, rising from Ksh 269.7 billion in H1 2023 to Ksh 284.2 billion in H1 2024. Notably, the bank reported a 5.0% reduction in gross non-performing loans (NPLs), which decreased to Ksh 34.8 billion from Ksh 36.7 billion in the same period last year.

However, despite the reduction in NPLs, I&M Group increased its loan loss provision by 8.2% to Ksh 3.5 billion from Ksh 3.2 billion in H1 2023.

I&M Group Reports Ksh 6.1 Billion Profit in First Half of 2024

I&M Group’s total revenue grew by 18.5%, reaching Ksh 22.7 billion, up from Ksh 19.1 billion in H1 2023. This increase was driven by a significant 46.1% rise in interest income, which amounted to Ksh 31.1 billion, compared to Ksh 21.3 billion in the previous year.

Net interest income also saw a substantial rise of 35.2%, reaching Ksh 16.5 billion, up from Ksh 12.2 billion in H1 2023. However, the bank’s non-interest income declined by 10.9%, falling to Ksh 6.2 billion from Ksh 6.9 billion in the previous year.

The group’s total assets saw a significant 12.1% increase, climbing to Ksh 564.4 billion from Ksh 503.5 billion in H1 2023.

I&M Group Reports Ksh 6.1 Billion Profit in First Half of 2024

The bank’s operating expenses increased by 15.8% to Ksh 10.8 billion, up from Ksh 9.3 billion in H1 2023. Additionally, interest expenses surged by 60.8%, reaching Ksh 14.6 billion, compared to Ksh 9.1 billion in the same period last year, reflecting the increased cost of funding.

Despite the rise in expenses, I&M Group maintained a cost-to-income ratio of 47.7%.

I&M Group’s shareholders’ funds grew by 10.5% to Ksh 86.4 billion from Ksh 78.2 billion in H1 2023. The bank’s share price also appreciated significantly, rising to Ksh 21.55 from Ksh 17.05 in H1 2023.

Read: Stanbic Holdings Posts Ksh 7.2 Billion Profit for H1 2024

Additionally, in the first half of 2024, regional subsidiaries of I&M Group increased their contribution to the Group’s operating income to 30%, up from 28% in 2023, with 83% of customers across the region being digitally active.

I&M Tanzania operating income grew by 25% to Ksh. 1.8 billion, with a 50% increase in operating profit. However, there was a 3% decline in total assets and a 6% decrease in loans and advances in Ksh. (though loans grew by 12% in TZS). Customer deposits rose by 2% in Ksh. (and 22% in TZS).

I&M Uganda achieved a 22% increase in operating income and a 54% growth in operating profit, with total assets growing by 4% to Ksh. 34 billion, and loans and deposits increasing by 3% and 7%, respectively. I&M Rwanda reported a 37% rise in operating income and a 59% increase in net profit.