I&M Bank Q1 Profit Remains Even at Sh2.5B on Loan Loss Provision

Owing to a loan loss provision, I&M Group PLC’s first-quarter profit after tax for the three months ending in March remained unchanged at Sh2.5 billion.

A rise in non-performing loans caused the loan loss provision to grow from Sh480.7 million to Sh1.6 billion, which resulted in static earnings.

In the period, the volume of non-performing loans went up 24 percent to Sh29.3 billion.

“This first quarter posed its own challenges amidst rising inflation and the high cost of doing business,” I&M Group PLC Group Executive Director Sarit Raja Shah said.

“Our continued investments in the group-wide iMara 2.0 strategy that focuses on customer centricity and digital transformation as well as the on-going strategic partnerships, have continued to give value to our customers and stakeholders. We look forward to a continued positive trajectory in the coming quarters,” added Shah.

Operating costs for the group, excluding loan loss provisions, were Sh4.4 billion, up 30% from the previous year due to continuing investments in people and technology across all of the jurisdictions.

“Coming into 2023, we have seen good momentum from a great performance in 2022. As we roll out the final year of our iMara 2.0 strategy, we remain confident in the progress we have made and look forward to taking the lessons into our next strategy in further steering I&M Group as Eastern Africa’s leading financial partner for growth,” the Group’s Regional CEO Kihara Maina said.

“We will continue to focus on our key areas of emphasis which include enhancing digital capabilities as well as building customer-focused products and services,” said Maina.