I&M Group has registered a Ksh. 5.45 billion net profit, this is a 25% increase compared to a similar period last year, in its 2021 Quarter 3 financial results. The increase in profit was attributed to increased net interest income and share of joint venture profit.
During the period under review, the I&M’s balance sheet and income metrics improved on the backdrop of a solid capital base and liquidity. Likewise, net interest income for the Group recorded a growth of 34% to close at Ksh. 14 billion, an increase from Ksh. 10 billion in September 2020. This was attributed to improved earnings from government securities and a reduction in interest expense.
The Group’s total non-funded income recorded a decline of 3% to close at Ksh. 6.1 billion which was down from Ksh. 6.4 billion year on year. Similarly, the Group’s operating expenses before loan loss provisions stood at Ksh. 9.7 billion, an increase of 28% year on year on account of increased investment in digitisation.
The Group’s loan impairment charges for the period stood at Ksh. 2.8 billion which was an increase of 31% year on year, to cater for portfolios affected by COVID-19.
Shareholder’s Equity for the Group also grew to Ksh. 68 billion from Ksh. 60 billion, attributed to improved profitability during the period under review.
Speaking at the financial results release, Daniel Ndonye, I&M Group Chairman said, “These results showcase the positive outcome of our strategy to drive business growth, build resilience and optimise operational efficiency across the Group. This has helped the Group to deliver a strong quarter three financial results despite the challenging operating environment caused by the ongoing pandemic.”
Orient Bank Uganda, which was acquired by I&M earlier this year, has successfully been rebranded to I&M Bank Uganda.
Commenting on the rebranding, I&M Group Executive Director, Mr. Sarit Raja Shah said, “The rebranding of Orient Bank to I&M Bank Uganda marks a key milestone in the Group’s strategic journey to extend its footprint across Eastern Africa. The Group, through this integration, looks forward to seeking opportunities to invest at a local and regional level enabling the Bank to serve the needs of customers in Uganda, while promoting trade flows within the region.”