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I&M Net Profit Increased by 15% to Sh13.3 billion due to Improvement in Operating Income

  • The group’s loan portfolio increased by 30% to Sh311 billion, thanks in part to the expansion of retail lending through the bank’s digital platforms.
  • Customer deposits closed at Sh417 billion, a 33 percent rise year on year, owing mostly to growth in CASA (Current Accounts and Savings Accounts).

I&M, a regional lender, reported a 15% increase in earnings after tax to Sh13.3 billion for the fiscal year ending December 2023, led by increased operational income.

This is an increase from the Sh11.6 billion net profit reported in 2022, as the lender continued to strengthen its position in the region by diversifying its business beyond corporate and institutional banking and growing lending to retail and small businesses.

During the year, the Group’s loan portfolio increased by 30% to Sh311 billion, owing in part to the expansion of retail lending through the bank’s digital platforms, and the net non-performing loan ratio was at 5% as of December 2023. Customer deposits closed at Sh417 billion, a 33 percent rise year on year, owing mostly to growth in CASA (Current Accounts and Savings Accounts).

The Group’s balance sheet expanded steadily, with total assets rising from Sh142 billion to Sh580 billion.

The regional financial services company, which operates in Kenya, Rwanda, Tanzania, Uganda, and Mauritius, saw its operational income increase by 20% from Sh36 billion the previous year to Sh43 billion.

During this era, new strategic initiatives accounted for approximately 20% of total income, according to management during an investor meeting in Nairobi on Monday.

Operating revenue rise was driven by a 25% increase in net interest income as interest rates rose and a 10% increase in non-interest income throughout the review period.

Non-interest income growth is due to an increase in income from banking transactions and foreign currency trading.

Meanwhile, the group’s operating expenses, excluding loan loss provisions, grew by 26% year on year to Sh20 billion due to branch expansion, inflationary pressures, and higher investment in staff and technology.