I&M bank booked a 29% rise in its half-year profit to hit Kes 4.25 billion during the six months period ended 30th June 2021 from a lower Kes 3.19 billion recorded during the same period last year. The performance was largely attributed to higher operating income in the six months, which helped offset greater costs in the period.
The group’s total operating income increased by 15.3 % to Kes 12.8 billion during the half-year period as net interest income hit Kes.8.9 billion from a lower Kes.6.9 billion in June 2020.
Revenue recorded in the Nairobi securities exchange-listed firm increased to kes 10.86 billion, a 19% rise from the kes 8.81 billion recorded during the period ended 30th June 2020. The increase was attributed to the gradual reopening of the economy, which has seen the economy take steps to recover from the adverse effects of COVID-19.
Profit before tax in the group stood at Kes 5.87 billion, a 23% rise compared to a Kes 4.50 recorded in the previous year.
The lender’s non-interest-based expenses rose to Kes 7.2 billion from Kes 6.1 billion last year as credit impairment charges remained largely unchanged at Kes1.1 billion.
Total assets in the I&M bank recorded an 11% gain from Kes 340.64 billion posted in 2020 to Kes 382.57 recorded during the period ended 30th June 2021.
The board of the bank did not recommend the payment of an interim dividend for the period.
Recently, I&M bank received a $50 million loan from the International Finance Corporation (IFC) and FMO, a Dutch development bank, to assist small businesses in Kenya by providing working capital, expansion, and weather the COVID-19 crisis.
IFC contributed $30 million, and FMO contributed $20 million to the I&M bank loan to boost the lender’s capital position and enable the bank to lend to small and medium-sized enterprises in the manufacturing, trade, and construction sectors.
The two institutions are set to train I&M bank workers on green financing to enable the bank to support sustainable investments, including renewable energy and climate-smart agriculture.