I&M Group Profit Jumps to Ksh 5 Billion in First Quarter of 2026

I&M Group PLC has reported strong financial results for the first three months of 2026, with profit after tax rising by 19.4% to Ksh 5.04 billion.

The regional lender said the growth was supported by higher loan income, increased customer deposits, and expansion of its overall operations.

According to the Group’s unaudited results for the period ending March 31, 2026, released on Tuesday, May 26, net interest income grew by 31.1% to Ksh 12.29 billion from Ksh 9.38 billion recorded during the same period last year.

“These financial statements are an extract from the unaudited financial statements of the Company and Group for the period ended 31 March 2026, which have been prepared in accordance with IFRS Accounting Standards and in a manner required by the Kenyan Companies Act, 2015,” read part of the statement.

Net interest income is the money the bank earns mainly from lending activities.

The bank’s net loans and advances also increased by 10% to Ksh 322.9 billion.

Total operating income rose by 24.5% to Ksh 16.14 billion, while non-funded income, which includes fees and commissions, increased by 7.1% to Ksh 3.85 billion.

Assets and Customer Deposits Grow According to I&M Group PLC Results

I&M Group’s total assets increased by 30.6% to Ksh 742.5 billion, up from Ksh 568.4 billion in March 2025.

Customer deposits also recorded strong growth, rising by 25.8% to Ksh 512.1 billion. The increase pushed the lender’s deposits above the half-trillion mark.

The Group’s total shareholders’ equity grew by 23.5% to Ksh 123.3 billion, strengthening its financial position.

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Bank Records Higher Costs but Fewer Bad Loans

Despite the strong performance, the bank recorded higher operating costs during the quarter.

Total operating expenses rose by 35.8% to Ksh9.90 billion. This was partly due to a 63.3% increase in loan loss provisions, which totaled Ksh 2.61 billion.

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Loan loss provisions are funds set aside by banks to cover possible defaults from borrowers who may fail to repay loans.

Even with the higher expenses, profit before tax still increased by 9.9% to Ksh6.24 billion.

The Group also reported improvement in loan quality. Gross non-performing loans, commonly known as bad loans, declined by 8.3% to Ksh 31.58 billion from Ksh 34.45 billion recorded in March 2025.

Strong Liquidity and Shareholder Returns

Earnings per share rose by 16.3% to Ksh 2.71, compared to Ksh 2.33 recorded in the same period last year.

The lender also maintained strong liquidity levels, with its liquidity ratio standing at 65%, far above the minimum statutory requirement of 20%.

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I&M Bank Executive Director Sarit Raja Shah speaking at a past function. PHOTO/I&M Bank