I&M Group recorded a 33.3 percent net profit growth to Kes 3.6 billion in the three months to March this year, compared to Kes 2.7 billion in the same period in 2023.
The lender attributed the growth to improved interest and operating revenues.
Loans and advances, which grew by Kes 11.4 billion and Kes 7.2 billion, respectively, pushed total interest income to Kes 15.6 billion, representing a 52.9 percent jump.
Additionally, government securities’ interest income grew from Kes 2.7 billion to Kes 3.3 billion, mainly due to margin expansions caused by a decline in holdings.
On the other hand, operating income went up 19.8 percent to Kes 11.5 billion, representing a 19.8 percent increase
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I&M Group Chief Executive Officer (CEO) Gul Khan says the growth has primarily been driven by growth in the corporate and retail segments, which saw increases of 58 percent and 33 percent, respectively.
Additionally, he asserted that the growth was due to the lender’s goals, which were anchored on providing seamless services to its customers.
“Our focus on offering relevant financial solutions for Kenyans like free bank to M-PESA transactions to individuals and sole proprietors, strategic branch expansion, and ecosystem partnerships has yielded results as demonstrated by our customer numbers and increase in deposits,” Khan said.
Similarly, the group’s balance sheet grew by 13 percent over the same period to close at Kes 533 billion, with customer deposits also expanding by 18 percent to Kes 384 billion year on year.
However, its net non-performing loans stood at Kes 14 billion, which the lender has attributed to a challenging macroeconomic environment.
It seeks to leverage technology to enhance further its profitability in various sectors, including its loan portfolio.
