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I&M Bank Group, a leading financial services conglomerate founded by Kenyan businessman Suresh Bhagwanji, reported a profit of Ksh2.71 billion ($23.2 million) at the end of the first quarter of its 2022 fiscal year.
I&M is the Kenya-based non-operating holding company for I&M Bank Limited, a leading financial services group with active operations in Kenya, Tanzania, and Rwanda, as well as a joint venture in Mauritius.
Shah, who is credited with transforming I&M Group into East Africa’s leading commercial banking group, owns a beneficial 10.98-percent stake in the company, which translates to 178,514,362 ordinary shares.
The group’s profit in the first quarter of 2021 increased by 44 percent from Ksh1.9 billion ($16.3 million) last year to Ksh2.71 billion ($23.2 million), demonstrating the bank’s business model’s resilience in the face of a slew of economic challenges, according to the group’s recently published unaudited results.
Earnings increased by a double-digit percentage due to a 21-percent increase in net interest income from Ksh4.3 billion ($36.9 million) in March 2021 to Ksh5.2 billion ($44.6 million), driven by higher earnings on loans and advances as well as government securities.
Aside from an increase in net interest income, the group’s earnings were bolstered by a 20-percent increase in fees and commissions, as well as a 76-percent increase in foreign exchange trading income, which increased from Ksh348.5 million ($2.99 million) in the first quarter of 2021 to Ksh612.8 million ($5.25 million).
The group’s balance sheet improved significantly as a result of the strong financial performance, driven by a solid capital base and strong liquidity, with total assets increasing by 18 percent during the period under review.
The group’s loan portfolio increased by 13 percent to Ksh218.4 billion ($1.87 billion), while net non-performing loans decreased by 31 percent year-on-year, owing to the increased loan book and recoveries.
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