I&M Bank’s earnings grow by five per cent

CORPORATE NEWS

By VICTOR JUMA, vjuma@ke.nationmedia.com

IN SUMMARY

• The lender’s net profit stood at Sh5.2 billion in the period compared to Sh4.9 billion the year before.

I&M Bank posted a five per cent rise in net profit for the year ended December, helped by increased lending.

This came as the loan book grew 10.5 per cent to Sh101.6 billion, raising interest income 9.4 per cent to Sh15.7 billion. I&M also benefited from an exceptional item that earned it Sh136.8 million last year.The lender’s net profit stood at Sh5.2 billion in the period compared to Sh4.9 billion the year before.

The bank shouldered higher costs that slowed down its profit growth. Its interest expenses jumped 18.9 per cent to Sh6.6 billion, partly reflecting a 2.1 per cent increase in customer deposits to Sh99.1 billion.

Non-interest income, including fees charged on transactions, declined 14.5 per cent to Sh3 billion.

The lender is the largest business unit of its parent I&M Holdings, which declared a dividend of Sh2.9 per share, up from Sh2.5 it paid on the previous year’s results. The share price has dropped 8.7 per cent over the past six months to trade at Sh125.