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I&M bank’s 9-month profit grows 18pc

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I&M Holdings
I&M Holdings, which made an after-tax profit of Sh4.94 billion in the corresponding period last year, recorded non-interest income growth of 38.6 per cent to Sh5.56 billion. FILE PHOTO | NMG 

NSE-listed #ticker:NSE bank I&M Holdings #ticker:I&M has reported 18 per cent growth in net profit for the nine months ended September to Sh5.85 billion driven by non-interest income.

I&M Holdings, which made an after-tax profit of Sh4.94 billion in the corresponding period last year, recorded non-interest income growth of 38.6 per cent to Sh5.56 billion on improved fees, commissions on loans and advances and foreign exchange trading earnings.

The group’s interest income also grew by 3.2 percent to Sh17.8 billion, amplified by revenue from loans and advances. I&M’s financials for the period comprised entities in Kenya, Tanzania, Rwanda and Mauritius.

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The lender, however, cut loan loss provisions by one per cent to Sh1.8 billion during the period despite its gross non-performing loans doubling to Sh22 billion.

The fall in loan loss provision continues to provide the base for banks’ increasing their profits in the nine-month period, with fellow top tier lenders KCB #ticker:KCB, Cooperative Bank #ticker:COOP, DTB #ticker:DTK and Equity Bank #ticker:EQTY all making significant reductions in their loan loss provisions even as the stock of bad loans goes up.

Only Barclays #ticker:BBK, among the top tier lenders that have so far released their results, has made an increase in the provision.

Latest data shows I&M as the sixth best performing bank in the sector in terms of percentage increase in profit for the period, ahead of Diamond Trust Bank which posted a 10 per cent growth in income as Co-operative and Equity earnings both grew by eight per cent.

Bank of Baroda and Barclays posted three and two per cent rise in earnings, respectively.

Bank of Africa recorded 736 per cent increase in profit to Sh62 million, the best performance in the sector as Guardian Bank earnings grew by 274 per cent to Sh420 million. CfC Stanbic bank profit during the period grew by 47 per cent to Sh4.7 billion as Standard Chartered posted a 34 per cent growth to Sh6.3 billion while Kenya Commercial Bank’s earnings surged 20 per cent to Sh18 billion.

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