I&M Group PLC’s first three months' profit after tax remained flat at Kes 5 billion due to loan loss provision.
This after the loan loss provision rose from Kes480.7 million to Kes1.6 billion amid an increase in non-performing loans.
In the period, the volume of non-performing loans went up 24 per cent to Kes29.3 billion.
I&M Group PLC Group Executive Director Sarit Raja Shah noted that the first quarter posed 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,” added Shah.
The group’s operating expenses, exclusive of loan loss provisions, stood at Kes4.4 billion, an increase of 30 per cent yearly because of continued investment in technology and people across each jurisdiction.
“Coming into 2023, we have seen good momentum from a great performance in 2022. As we roll out the final year of our iMara 2.0 strategy, we remain confident in the progress we have made and look forward to taking the lessons into our next strategy in further steering I&M Group as Eastern Africa’s leading financial partner for growth,” the Group’s Regional CEO Kihara Maina said.