I&M profit falls 21 per cent

I and M building

NAIROBI, KENYA: I&M Holdings has announced a 21 per cent decline in its net profit to Sh8.41 billion last year from Sh10.77 billion in 2019.

Group Chairman Daniel Ndonye attributed the decline in profitability to a tough operating environment last year due to Covid-19.

During the period under review, net interest income recorded a marginal growth of one per cent to Sh15.59 billion, up from Sh15.5 billion in December 2019 due to what Ndonye said was an increased focus on growing quality interest-earning assets.

The net Non-Performing Assets (NPAs) recorded a decline of 10 per cent to Sh7.84 billion.

Net interest income recorded a marginal growth of 1 per cent to Sh15.59 billion up from Sh15.5 billion in December 2019 attributed to increased focus on growing quality interest earning assets.

Commenting on the financials, Daniel Ndonye, I&M Holdings PLC Chairman noted that 2020 was one of the most challenging years that the Group had witnessed.

“We rose above the challenges by looking at new dimensions that would help sustain the Group’s business performance across the countries that we operate in. Key among them was to ramp-up efforts in our digital transformation journey and strategic expansion initiatives.”

The I&M Group last year announced the planned acquisition of Orient Bank, Uganda which is subject to receipt of regulatory approvals and expected to close in second quarter 2021.

The Group’s Board also proposed a dividend of Sh2.25 per share.