I&M Group PLC has announced a 25 percent increase in after-tax profit to Ksh5.45 billion for its 2021 Quarter 3 financial results.
The Group’s asset base rose to Ksh399 billion, reflecting a 16 percent year-on-year growth due to increases in the loan book and investments in government securities.
“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 Covid-19. The actions taken by the Group to improve its operating efficiencies and financial returns, as well as the gradual economic recovery, have placed it on a strong upward growth trajectory,” said Daniel Ndonye, I&M Group PLC Chairman.
During the period under review, the Group’s balance sheet and income metrics improved on the backdrop of a solid capital base and liquidity.
The Group’s loan portfolio grew by 12 percent to Ksh208 billion as of September 30, 2021, up from Ksh186 billion for the same prior-year period.
Customer deposits of the Group closed at Ksh289 billion, or a 14 percent increase year on year.
The Group’s Net Non-Performing loans stood at Ksh7.5 billion reflecting an 11 percent reduction year on year, largely due to recoveries and upgrades from Nonperforming loans during the year.
Shareholder’s Equity for the Group grew to Kshs 68 billion from Kshs 60 billion, owing to improved profitability during the period under review.
Net interest income for the Group recorded a strong growth of 34 percent to close at Ksh14 billion, an increase from Ksh10 billion in September 2020 on account of improved earnings from government securities and a reduction in interest expense.
The Group’s total non-funded income recorded a decline of 3 percent to close at Ksh6.1 billion which was down from Ksh6.4 billion year-on-year.
Operating expenses before loan loss provisions stood at Ksh9.7 billion, an increase of 28 percent year on year on account of increased investment in digitisation.
