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I&M records 22pc fall in earnings in nine months

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I&M Holdings Limited has reported a 22.2 per cent drop in profit after tax in the six months to September as income from loans fell and staff costs rose.

The lender Monday reported a Sh3.867 billion profit after tax down from Sh4.970 billion during a similar period last year, in a year that saw banks subjected to caps on interest rates introduced in August last year.

I&M Holdings chief executive Kihara Maina said the financial statements as at September 30, include I&M Bank Limited and I&M Insurance Agency.

While the group’s total non-interest revenue from operating income such as fees and commissions on loans and advances rose by 1.09 per cent to Sh3.276 billion from Sh2.996 the previous year, interest income fell slightly to Sh15.169 billion from Sh15.799 billion similar period last year.

The total interest income was partly affected by loans and advances, which fell by 7.7 per cent from Sh12.339 billion last year to Sh11.388 billion.
Customer deposits also fell by a 6.9 per cent drop to Sh5.085 billion.

I&M Bank net loans and advances to customers, however, went up by 10.9 per cent to Sh133.19 billion.

This is even as staff costs went up to Sh2.189 billion from Sh1.959 billion a similar period last year.