I&M Group's Profit Rises 28% on Income Growth

I&M Group closed FY2025 with a solid expansion in profitability, supported by strong balance sheet growth, improved funding efficiency, and strong non-interest income, even as lending income softened.

• •Profit after tax attributable to shareholders rose to KSh 18.8 billion from KSh 14.7 billion in 2024, representing a 27.6% increase.
• •This performance was driven largely by a significant reduction in interest expenses and an expansion in total operating income, which grew to KSh 60.3 billion from KSh 50.6 billion.
• •Total assets have expanded by 15% to KSh 668.9 billion, largely driven by growth in loans and advances to customers, which increased to KSh 306.3 billion while customer deposits rose by 17% to KSh 483.9 billion.

Net interest income increased by 16% to KSh 45.9 billion despite a decline in interest income from loans and advances, which fell to KSh 45.6 billion. This suggests either a more cautious lending environment or repricing of credit. However, the impact was offset by a sharp drop in interest expenses, particularly on customer deposits, highlighting improved cost of funds.

Non-interest income also strengthened, rising to KSh 14.4 billion from KSh 11.0 billion. Growth was supported by higher fees and commissions, alongside a notable increase in other income streams.

Gross non-performing loans declined to KSh 31.4 billion, while net NPLs reduced sharply to KSh 8.9 billion from KSh 13.4 billion in 2024.

Total capital rose to KSh 118.6 billion and all regulatory ratios above statutory minimums. Liquidity also improved, with the liquidity ratio increasing to 59.7%, well above the required 20%, indicating strong short-term financial resilience.

Operating expenses rose to KSh 36.9 billion, but the growth in income outpaced costs, supporting improved profitability metrics overall.

The Group declared a total dividend of KSh 3.75 per share for FY2025, up from KSh 3.00 in 2024, signalling confidence in earnings sustainability and capital position.

Key Financial Figures (KSh Billions)