I&M bank has announced a decline of 6.4% in its Profit After Tax for the year ended 31 December 2017 closing in at Sh 7.3 billion.
The lender attributed the decline on the economic headwinds experienced last year in Kenya and the consequences of interest rate capping.
Total interest income declined by 0.1% to Sh 24.4 Billion while net interest income remained flat at Sh15.6 Billion. Gross non performing loans surged by 107% to Sh 19.5 Billion. Total non interest income rose by 16% to Sh 5.8 Billion.
While commenting on the results, the bank’s Chairman, Daniel Ndonye said the prolonged electoral process in Kenya, had largely constrained economic growth, with the manufacturing sector especially taking a hit. “In our 44 years of existence, our performance has always closely mirrored that of the Kenyan economy; the country suffers, we suffer, and as it prospers, we prosper.”
The lender’s loan book expanded by 14% to close at Sh 153 billion up from Kshs 135 billion reported the previous year. Customer deposits closed at Sh 169 billion up from Kshs 147 billion recorded the previous year, representing a 16% growth.
The bank kept its full year dividend unchanged at Sh 3.50, to be paid on May 24th 2018 as books close on April 30th 2018.
