I&M Holdings Report a Decline in its 2020 Net Profit

I&M Holdings has reported a 21 percent decline in its 2020 after-tax profit from Sh10.77 billion in 2019 to Sh8.41 billion in 2020. This is due to the impact the coronavirus pandemic had on businesses.

In 2020, the Group’s net Non-Performing Assets (NPAs) recorded a drop of 10 percent to Sh7.84 billion. Daniel Ndonye, I&M Holdings PLC Chairman, revealed in a statement that 2020 was one of the most challenging years that the bank had witnessed. During the period under review, the Group introduced measures aimed at cushioning them from the COVID-19 crisis such as increased financing to businesses supporting COVID-19 mitigation measures, waiver of fees of select loans like Mortgages, and loan repayment holidays for its lending customers.

The Group also pushed uptake and usage of its alternate banking channels by giving concessions to encourage customers to utilize these channels for their banking transactions. This in turn led to the Group’s total Non-Interest Income recording a marginal but steady growth year on year.

The bank also recorded a 14 percent growth in its balance sheet size for its 2020 Full Year Financial Results, up from Sh315.2 billion in 2019 to Sh358.09 billion in 2020, bolstered largely by growth in customer deposits.

“We rose above the challenges by looking at new dimensions that would help sustain the Group’s business performance across the countries that we operate in. Key among them was to ramp-up efforts in our digital transformation journey and strategic expansion initiatives,” stated Daniel Ndonye.

By Fatiha Shabir