Kenya’s I&M Bank Posts a $57.5 million Profit For 2013

Kenya-based I&M Bank Group recorded a profit of 20.8 percent profit after tax in the year ending December 2013, with earnings rising from the Sh4.12 billion ($47.6 million) in 2012 to Sh4.98 billion ($57.5 million).  The bank said profit was buoyed by improved lending, which was encouraged by stability of interest and foreign exchange rates. Loan grew from Sh71 billion ($820 million) to Sh91.9 billion ($1.1 billion). Customer deposits also increased to Sh97.1 billion.

DailyNation quoted I&M executive director Sarit Shah as saying, “We managed to take advantage of relatively stable interest and exchange rates to maintain profits.”   The group, which has subsidiaries in Kenya, Mauritius, Rwanda and Tanzania said its Kenya unit was responsible for 84 percent of its earnings.

I&M Group’s non-performing loans however increased by more than 100 percent from Sh303 million to Sh1 billion.  The Group’s Chief Executive, Arun Mathur noted that most of the company’s non-performing loans are held by its customers in the construction company, who he said had been having difficulties getting payments for projects done.

The Nairobi Securities Exchange (NSE)-listed Group, which is a major player in the financial services industry in East Africa, had its total assets valued at $1.73 billion in 2012. Shares of I&M closed at Sh 125 ($1.4) on Friday at the NSE, the same price it traded the previous day.

Source: Ventures Africa