I&M Group has registered Ksh. 4 billion an increase of 33% after tax profit for its 2021 half year financial results up from Ksh. 3.2 billion to Ksh. 4 billion.
The Group’s Total Assets recorded a growth of 12% to close at Ksh. 379 billion up from Ksh. 339 billion in June 2020. This growth was attributed to expansion into Uganda and increased private and public sector lending. The acquisition of Orient Bank (OBL) in Uganda has expanded the Group’s balance sheet by Ksh. 23 billion.
The Group’s net interest income recorded strong growth of 28% to Ksh. Ksh. 8.9 billion up from Ksh. 6.9 billion in June 2020 attributed to increased interest income from government securities.
Net non-performing loans reduced by 8% compared to a similar period last year, to close at Ksh. 7.5 billion. This was attributed to strengthened remedial actions in improving the loan book quality.
Customer deposits recorded a 10% growth from Ksh. 252 billion in June 2020 to Ksh. 276 billion as at June 2021.
Commenting on the Group’s financials, Mr. Daniel Ndonye, I&M Group Chairman said, “We will continue to focus on our customers across all the banking segments through a series of products and innovations that are tailored to enhance customers banking experience across all our subsidiaries.”
Additionally, the Rwandan and Tanzanian subsidiaries launched WhatsApp banking, a key milestone in the Group’s digital transformation journey to provide customers with freedom of modern banking.
The Group’s Executive Director, Sarit Raja Shah underscored significant investment made during the first half of 2021. “Along with innovation of market driven solutions, we have also made significant investments in new systems across the Group in a bid to increase operational efficiencies and improve our customers’ banking experience.”
Further, the Group progressed on its strategic effort to create long-term value for stakeholders, through continued investments to build resilience and mitigate against emergent operational, cyber and credit risk. During the period under review, the Bank invested in a new Risk Management infrastructure for Anti-Money Laundering, Operational Risk and Fraud Management, as a key step in protecting its customers from the threat of financial crime on the Bank’s systems.
Through the I&M Foundation, the Group collaborated with like-minded organizations to drive its shared growth agenda in key thematic areas. These include Education and Skills development, Environmental Conservation, Economic Empowerment and Enabling Giving.
Key to note was that the Foundation partnered with the Kenya Community Development Foundation to drive environmental conservation initiatives spearheaded by the youth in Narok and Kilifi counties. The Foundation continues to support education scholarships for bright but financially constrained students at Strathmore University and the Palmhouse Foundation. The Foundation also donated towards the Maa Trust’s Mau Bead-Work project, to cushion the Trust’s beneficiaries from the negative economic impact of the COVID-19 pandemic.