I&M bank net profit grows to Sh8.5 billion

NAIROBI, KENYA: NSE-listed bank I&M Holdings has reported a growth in net profit for the year ended 2018 to Sh8.5 billion from Sh7.3 billion recorded last year, driven by interest income.

I&M Holdings recorded an increase in interest income to Sh25.99 billion from Sh24.4b recorded during the previous period. However, income from government securities decreased to Sh4.96 billion from Sh5.36b recorded in 2017.

The lender's loan book grew to Sh166.73 billion from Sh153.08 billion recorded during the previous period.

I&M cut loan loss provision by 8.11 per cent Sh3.81 billion from Sh4.14 billion in 2017 despite its gross non-performing loans increasing by 22 per cent to Sh23.83billion.

I&M joins a growing list of other banks that have declared profits during the financial year ending December 31, 2018.

On Tuesday, Equity declared a net profit of Sh19.8 billion for the year ended December 2018.

This was a five per cent jump from Sh18.9 billion posted last year.

The bank, which made its mark through credit to small borrowers, saw its customer loans increase from Sh279 billion to Sh297 billion.

During the same period, Kenya Commercial Bank made a Sh24 billion net profit last year, a 21.8 per cent jump from Sh19.7 billion in 2017 on lower costs and sustained incomes.