I&M Group has reported its financial results for the third quarter of 2021 with Profit after tax (PAT) surging 25.1% to Kes 5.4 Billion mainly on the back of a 34.5% growth in net interest income to Kes 14 Billion.
The lender attributed the growth in earnings to increased net interest income and its share of joint venture profit.
“These results showcase the positive outcome of our strategy to drive business growth, build resilience and optimise operational efficiency across the Group,” said Daniel Ndonye, I&M Group PLC Chairman.
He further noted that the actions were taken by the Group to improve its operating efficiencies and financial returns have placed it on a strong upward growth trajectory.
Total interest income for the period under review was up 15.7% to Kes 22.8 Billion as interest expenses declines slightly by 5.2% to Kes 8.9 Billion. This was on account of improved earnings from government securities and a reduction in interest expense.
The lender’s Non Funded Income fell by 3.5% to Kes 6.2 Billion as other operating income fell by 21% to Kes 1.6 Billion. Net earnings from forex dealings fell by 14% to Kes 1.2 Billion as income in form of Fees and commissions rose 13% to Kes 3.4 Billion.
Customer loans and advances in I&M Group rose 12% to Kes 207.6 Billion as investments in securities rose by the same margin to 12% to Kes 102 Billion. Customer deposits increased by 14% to Kes 288.7 Billion
The Group’s asset base rose to Kes 399 billion, reflecting a 16% year-on-year growth due to increases in the loan book and investments in government securities.
I&M Group Outlook and Dividend
The I&M Group has strengthened its long-term value for stakeholders through its commitment to Environmental, Social, and Governance (ESG) initiatives, thereby placing it in a good strategic position to align with the Central Bank of Kenya’s newly launched Climate-related Risk guidelines for the banking industry.
The Group has established its ESG framework that sets out a clear implementation plan for embedding sustainability across the Group’s business operations and physical assets.
The board of directors did not recommend the payment of an interim dividend.