Banking services group, I&M Holdings PLC has today announced a 16.2 percent growth in profit after tax from 9.9 billion shillings recorded in 2017 to 11.4 billion shilling in the 2018 financial results.
The Group also announced a one to one bonus share issue to which Daniel Ndonye, Chairman, I&M Holdings PLC claimed is the first ever bonus issue declared by the Group.
“The Group has enjoyed strong support from its shareholders, and the bonus issue just rewards for the faith shown to us by our shareholders,” Ndonye said.
The Group with operations in Kenya, Mauritius, Rwanda, and Tanzania was able to navigate a challenging operating environment, on the back of its corporate strategy.
Despite several challenges experienced, I&M Holding’s foreign subsidiaries supported the overall performance contributing 19.80 percent of the overall profit before tax.
On the contribution from the flagship unit, I&M Bank Kenya, the Chairman termed the results highly commendable, despite the challenges presented by the continued impact of the interest rate capping law, which continues to affect performance across the industry and the Kenyan economy.
The lender’s loan book recorded a modest growth of 8.97 percent compared to December 2017, to 166 billion shillings up from 153 billion shillings.
This was despite a significant increase in the deposits base of 25.91 percent, from 169.2 billion in December 2017 to close at 213.1 billion.
I&M Holdings PLC recorded an increase in its Non-Performing Assets as compared to a similar period last year to stand at 23.8 billion up from 19.4 billion shillings.
The Group’s Total Assets recorded an impressive growth of 20.16 percent to close at 288.5 billion up from 240.1 billion shillings recorded in 2017.
“2018 marks an important year for the Group as we reaped early from the benefits of our Corporate Strategy. Our revenue has gradually decreased its reliance on funded income and has witnessed the Bank’s resilience against environmental adversity,” Kihara Maina, CEO, I&M Bank, Kenya concluded.