Group performance
I&M Group saw its net profit for the half year to June 2025 rise by 36 per cent to Sh8.3 billion due to growth in operating income. Operating income rose by 21 per cent to Sh27.4 billion compared to Sh22.7 billion generated in the first six months of 2024.
Operating expenses grew by 12 per cent largely driven by branch expansion and investment in staff. In Kenya, I&M Bank has opened 13 new branches across the country in the last 12 months increasing its presence from 12 counties in 2022 to 24 counties.
Kenya subsidiaries’ performance
I&M Bank Kenya grew its profit before tax by 31 per cent from Sh6.3 billion to Sh8.2 billion contributing 75 per cent of the group’s profit before tax. The rise in profit before tax was driven by strong operating income which grew 21 per cent from Sh15.4 billion to Sh18.7billion.
Even though the bank has seen its proportion of letters of credit issuance for G2G oil deal fall, it is still among the leading players in trade finance with its market share rising from 8.6 per cent to 9.9 per cent.
“More banks are now in that space (issuing letters of credits for G2G deal). Oil Marketing Companies now have more choice. When it started few banks participated. Our market share has definitely gone down,” chief executive officer of I&M Bank Kenya, Gul Khan, told investors during the investor briefing.
The bancassurance unit had a modest growth in revenue, with commissions and interest income earned growing 15 per cent from Sh305 million to Sh353 million.
Assets under management by I&M Capital grew 3.5 times from Sh20 billion to Sh70billion over the last one year.
The three Kenyan subsidiaries combined saw their operating income grow 21.9 per cent with profit before tax rising by 32 per cent.
Rwanda subsidiary performance
I&M Bank Rwanda grew its profit before tax by 19 per cent from Sh1.3 billion to Sh1.6 billion contributing 15 per cent of the group’s profit before tax. The rise in profit before tax was driven by a slight growth in operating income which grew 4 per cent from Sh3.5 billion to Sh3.6 billion.
The performance was driven by a deliberate strategy to deepen relationships with high-impact anchor clients, particularly in oil & gas, manufacturing, and breweries sectors.
Tanzania subsidiary performance
I&M Bank Tanzania saw its profit before tax grow by 43 per cent to Sh580 million in the first six months of 2025. The growth was buoyed strong operating income which grew 40 per cent to Sh2.5 billion.
Operating income grew on the back of a 45 per cent increase in net interest income from growth in digital loans (Kamilisha product). Non-interest income grew by 37 per cent supported by growth in trade finance income and fees & commissions.
Uganda subsidiary performance
I&M Bank Uganda grew its half year profit before tax by 23 per cent to Sh210M on the back of growth in foreign exchange trading income and bond trading. The subsidiary contributed 2 per cent of the Group’s profit before tax.
Loss loss provisions dropped during the period as a result of strong recovery efforts and close monitoring of accounts at risk.
Mauritius joint venture performance
Bank One Mauritius, which is a 50-50 joint venture between I&M Group and Mauritian conglomerate CIEL Limited, contributed Sh407 million as the group’s share of profit from the joint venture.
The bank saw its operating income fall by 19 per cent from Sh3.06 billion to Sh2.49 billion due to low loan book and high cost of funds.
Dividends
The company did not recommend the payment of an interim dividend. The company declared an interim dividend of Sh1.30 per share after releasing third quarter results last year.
“We have not made any decision on dividends. However, the input is coming in from different shareholder circles. We will look at it as the board and announce it at the appropriate time,” Regional Chief Executive Officer of I&M Group, Kihara Maina, told investors during the investor briefing.
“One of the things we have to do as management is disciplined capital planning. We will listen to all that [input from shareholders on dividends] but the best thing we can do for you as the shareholder is look after your investment in the best way possible,” Group Chief Financial Officer of I&M Group, David Ngata, said.
Future growth
A strong profit before tax growth in Kenya of 32 per cent saw the profit before tax contribution of regional subsidiaries’ fall from 26 per cent to 24 per cent.
The company’s executives said the company is watching opportunities like other outbound banks in Kenya (like KCB looking at Ethiopia) but still expect most of the growth to be organic.
