I&M Group PLC delivered a strong financial performance in FY2025, marked by robust profitability growth and significant balance sheet expansion.
The Group reported a profit after tax of KES 19.8 billion, representing a 24.5% increase from KES 15.9 billion in the prior year.
The robust growth in net income was supported by a strong rise in revenue during period to KES 60.3 billion, up 19.2% year-on-year. Net interest income rose sharply by 16.0% to KES 46 billion, buoyed by a significant 23.9% decline in interest expenses amid declining interest rates during the review period, enabling banks to make deeper cuts in deposit rates compared to the reduction in lending rates.
Non-interest income surged 30.8% to KES 14.4 billion, lifting total operating income by KES 9.7 billion to KES 60.3 billion. Pre-tax profit climbed 24.1% to KES 23.4 billion, while profit after tax (exceptional items and non-controlling interest) grew 27.6% to KES 18.8 billion. Earnings per share improved from KES 8.90 to KES 10.79 in FY2025.
Total assets grew by 15.1% to KES 688.9 billion. Customer deposits reached KES 483.9 billion, up 17.4%, while loans and advances inched up 6.5% to KES 306.3 billion. Shareholder’s funds crossed the KES 100 billion mark to close at KES 115.2 billion, up 22.8% year-on-year.
I&M Group Key Ratios
The Cost-to-income ratio inclusive of loan loss provisions improved to 61.2% compared to 62.70% a year earlier, reflecting enhanced operational efficiency. The loan-to-deposit ratio declined to 63.3% from 69.6%. Return on Assets (ROA) stood at 3.2%, while Return on Equity (ROE) came in at 18%.
I&M Group’s liquidity ratio improved to 59.7% from 51.6%, nearly three times the statutory requirement set by the Central Bank of Kenya (CBK). The NPL Ratio declined to 9.8% from 11.7% in FY2024, underscoring the Group’s improved asset quality.
I&M Group lifts Dividend 25%
The Board of Directors declared a final dividend of KES 2.25 per share. Combined with an interim payout of KES 1.50 per share, the total dividend amounts to KES 3.75, up 25% year-on-year and translating to a payout ratio of 34.8%.
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