I&M Group Posts Robust 36% Profit Growth, Hits KSh8.3 Billion in HY25

I&M Group has reported a remarkable 36% surge in profit after tax, reaching KSh8.3 billion for the half-year period ending June 30, 2025.

This significant growth, detailed in the bank’s latest income statement, shows robust performance across key revenue streams and effective cost management, despite challenging economic conditions.

I&M profits

Profit before tax rose 34% to Ksh11.7 billion compared to the same period in 2024, reflecting sustained momentum across key income lines despite higher loan provisions and staff costs.

The bank’s total interest income rose by 24% to Ksh20.4 billion as the interest from loans and advances grew by 4% to Ksh21.6 billion, while income from government securities increased by 34% to Ksh9.3 billion.

Interest from other banking institutions, however, dipped by 28% to Ksh1.15 billion. Non-interest income also saw a significant 64% jump to Sh9.97 million, bolstered by a 12% rise in fees and commissions on loans to Ksh1.3 billion, and an 8% decline in foreign exchange trading income to Ksh1.67 billion.

Operating expenses were carefully managed, with loan loss provisions rising by 14% to Ksh4.7 billion and staff costs increasing by 19% to Ksh4.96 billion.

Other operating costs grew by 5% to Ksh7.1 billion, but the bank maintained a strong operating income of Ksh27.4 billion, a 21% increase.

This profit growth is underpinned by strategic expansions, with total assets up 4.3% to Ksh589 billion and the loan book increasing by 2.1% to Ksh290 billion.

However, gross non-performing loans (NPLs) declined by 1.4% to Ksh34.4 billion, indicating improved credit quality.

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Earnings per share (EPS) rose 37% to Ksh4.51, though the current share price stands at Ksh37.55 as of August 18, 2025, with no interim dividends declared.

Major notables

The bank’s ability to enhance profitability amidst a 5% drop in other income to Ksh9.97 million showcases its resilience.

The 19% share of profit from joint ventures, totalling Ksh407 million, adds further diversity to the revenue streams.

Interest expenses, including a 25% drop to Ksh9.8 billion on customer deposits and a 35% reduction to Ksh1.1 billion on other banking institutions, have also supported the bottom line.

I&M Group’s success can be attributed to its focus on core banking operations and prudent risk management.

The 3% year-on-year growth in interest income from government securities, alongside a controlled rise in operating costs, reflects a balanced approach to revenue generation and expense control.

The decline in NPLs suggests effective loan monitoring, while the asset growth signals confidence in the bank’s expansion strategy.

Despite a challenging economic environment, I&M Group’s strategic initiatives, such as optimizing its loan portfolio and leveraging joint ventures, have driven this impressive profit surge.

The bank’s financial health is further evidenced by a stable capital adequacy ratio and liquidity position, ensuring it remains well-positioned for future growth.

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I&M Group continues to demonstrate its capability to deliver value to shareholders while navigating market uncertainties effectively.

I&M Bank’s Vision

I&M Bank aims to reach one million customers by 2026, with strong adoption of digital services.

Currently, over 82% of customers are digitally active, and the bank processes 3 million mobile transactions monthly.

The bank has reduced customer onboarding time from 24 hours to approximately five minutes, while significantly lowering acquisition and service costs by 44% and 72%, respectively.

Its long-term vision involves impacting 10 million lives by 2026 across its footprint in Eastern Africa through responsible practices and sustainable growth.

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