An increase in the loan loss provision trimmed I&M Group’s net profit during the first nine months of 2024 to Kshs 9.2 billion, representing an 18% year-on-year growth.
The group increased the loan loss provision from Kshs 14.6 billion to Kshs 17.2 billion to cover the Kshs 35.7 billion in Gross Non-Performing Loans and Advances.
I&M Group PLC’s Regional CEO, Kihara Maina, attributes the state of non-performing loans to “macroeconomic challenges”.
Maina says the growth in profit was fuelled by substantial gains in operating income, driven by a 49% increase in the corporate and institutional banking segment and a 28% increase in the retail banking segment.
The increase in profit has prompted the lender to recommend a Kshs 1.30 per share interim dividend to paid on 14th January 2025.
He says operating expenses, excluding loan loss provisions, rose 16%, on account of “investments in technology, talent, and branch expansion in Kenya and Rwanda.”