NAIROBI, Kenya, Aug 25 – I&M Group profit fell two percent to Sh7 billion in the six months ending June 2023 compared to a similar period last year due to growing loan loss provisions.
The lender’s net non-performing loans stood at Sh10 billion, highlighting a tough macro-economic environment.
“The rise in the Non-Performing loan book and provisions reflects our cautious approach to portfolio management amid a challenging business environment,” I&M Group PLC Group Executive Director Sarit Raja-Shah said.
“As we move ahead, the Group’s emphasis remains on expanding our portfolio and enabling our customers to achieve their business goals,” he added.
However, the bank’s operating income continued to show momentum after it increased by 23 percent to Sh9.1 billion in the review period.
Increased revenue was boosted by strong income generation in regional businesses, which contributed 27 percent of the earnings.
Its loan portfolio also grew by 17 percent to Sh270 billion, partly linked to retail lending through the group’s digital platforms.
“In the first half of the year, our focus centered on providing relevant financial solutions designed for Kenyans,” its CEO, Gul Khan, said.
“This included waiving of Bank to mobile wallet charges with the Ni Sare Kabisa campaign to cushion Kenyans against the high cost of living, the Unsecured Personal Loan of up to KES 10 million,” he added.
