I&M profit after tax up 22pc to Sh10.17bn on stronger lending income

NAIROBI, Kenya, Aug 27 – I&M Group has posted a 22.35 percent rise in net profit for the six months to June, supported by stronger income from lending as the banking group expanded its loan book and grew other revenue streams.

The lender reported net earnings of Sh10.17 billion in the first half of 2026, up from about Sh8.31 billion recorded in a similar period last year.

Net interest income, the difference between interest earned from loans and investments and interest paid on deposits and other funding, rose 22.52 percent to Sh25.04 billion.

The increase came as the group expanded lending, with its gross loan book growing 15 percent to Sh333.81 billion from Sh290.26 billion in June 2025.

“Net earnings are up 22.35% to Kes 10.17 billion,” the Bank announced in its latest financial statement. “Net Interest Income is up 22.52% to Kes 25.04 billion.”

The growth in interest income points to increased contribution from the bank’s lending business, although the expansion also comes as banks continue to manage credit risks and funding costs in a market where borrowers remain sensitive to interest rates.

I&M’s deposit base rose 17.65 percent to Sh505.16 billion, providing the group with a larger pool of customer funds to support lending and other investments.

Beyond lending, non-interest income increased 24.5 percent to Sh8.66 billion, indicating that fees, commissions and other non-lending revenue also made a significant contribution to the earnings performance.

Asset quality also improved during the period. Gross non-performing loans declined 12.39 percent to Sh30.11 billion from Sh34.37 billion a year earlier.

Net NPL exposure fell to Sh7.58 billion, compared with Sh11.88 billion in June 2025.

The decline in bad loans provides some relief as the group grows its lending portfolio, potentially reducing pressure from credit-loss provisions.