I&M Group's profit dropped by two percent to Kes 7 billion in the six months ending June 2023 compared to a similar period in 2022.

The lender attributed the drop to growing loan loss provisions.

Further, the lender’s net non-performing loans stood at Kes 10 billion, highlighting a tough macroeconomic environment.

I&M Group PLC Group Executive Director Sarit Raja-Shah said the rise in the Non-Performing loan book and provisions reflects its 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 said.

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However, the bank’s operating income continued to show momentum after it increased by 23 percent to Kes 9.1 billion in the review period.

Strong income generation in local enterprises, which provided 27% of the earnings, helped increase revenue.

Additionally, its loan portfolio increased by 17% to Kes 270 billion, with some of this growth being attributed to retail lending through the group's digital platforms.

On his part, I&M Group PLC Group said in the first half of the year, the lender focused on providing relevant financial solutions designed for Kenyans.

“This included waiving of Bank to mobile wallet charges with the Ni Sare Kabisa campaign to cushion Kenyans against the high cost of living, the Unsecured Personal Loan of up to Kes 10 million.”