In the first half of 2025, I&M Group Plc reported impressive results, increasing its profit after tax by 36 per cent yearly to KShs 8.3 billion.
Double-digit income growth, increased cost efficiency, and improved subsidiary contributions helped increase profit before taxes by 34 per cent to KShs 11.7 billion.
The Group’s return on assets increased to 2.9 per cent, indicating increased profitability throughout its footprint, while its return on equity improved to 16 per cent.
Net interest income rose to 19%
Net interest income rose 19 per cent as funding costs decreased, contributing to a 21 per cent increase in operating income to KShs 27.4 billion.
Additionally, non-interest revenue increased gradually thanks to fees, ecosystem partnerships, and trade finance. As the Group invested in technology, branch expansion, and people initiatives, the cost-to-income ratio improved from 48 per cent in H1 2024 to 43 per cent, highlighting consistent expense management.
The gross non-performing loan ratio decreased to 11.8 per cent from 12.3 per cent during the same period last year, indicating improved asset quality.
Stronger recoveries and more cautious credit reviews throughout the Group are the reasons for the net non-performing asset ratio’s further decline to 4.1 per cent.
A slight increase in the cost of risk to 2.8 per cent suggests that caution is still being exercised in a mixed macroeconomic environment.
Customer deposits rise 2% to KShs 429 billion
The Group’s balance sheet held up well, with customer deposits rising 2 per cent to KShs 429 billion and net loans and advances rising marginally to KShs 290 billion.
Total assets increased by 4 per cent year over year to KShs 589 billion. All subsidiaries’ total capital adequacy ratio of 20 per cent and liquidity ratio of 54 per cent, which are significantly above regulatory thresholds, demonstrate the continued strength of the capital and liquidity buffers.
Contribution of subsidiaries
Subsidiaries contributed significantly to growth, making up 24 per cent of the group’s pre-tax profit. With a 15 per cent market share, Rwanda was in first place thanks to double-digit income growth and a recovery in essential industries like manufacturing and oil and gas.
Uganda’s profitability increased due to recoveries and the growth of agency banking, while Tanzania contributed 5 per cent of Group PBT, driven by robust digital lending momentum.
Despite paying higher funding costs, Mauritius continued to gain from recoveries and balance sheet expansion.
Performance in Kenya, which still makes up 75 per cent of the group’s profit before taxes, was supported by higher core earnings, as operating income increased 21 per cent and PBT increased 31 per cent.
While retail and business banking continued to expand their clientele, with MSMEs accounting for more than 30 per cent of new acquisitions, corporate and institutional banking grew due to increased margins, diversification efforts, and an expanding trade finance book.
I&M Group’s bancassurance and wealth management divisions
The Group’s bancassurance and wealth management divisions also saw notable growth. The significant increase in assets under management from KShs 20.7 billion to KShs 70 billion over the previous year demonstrated clients’ growing confidence in I&M’s investment solutions. The number of wealth management clients nearly tripled to 9,400 during that time.
Additionally, Bancassurance increased its customer base to 13,900 and its revenue to KShs 352.7 million, a 15% increase. By strengthening revenue streams outside of traditional lending, these companies play a bigger role in the Group’s diversification strategy.
During the half-year, ecosystem partnerships disbursed over KShs 14 billion in financing for green SME, agri-tech, and payments.
The growing integration of subsidiaries into this growth story demonstrates the benefits of a regionalised, technology-driven approach.
I&M Foundation
I&M continued to further its sustainability agenda through the I&M Foundation, going beyond financials.
Initiatives included increasing secondary and tertiary education scholarships, planting more than 600,000 trees, and giving women and young people the tools they need to generate sustainable income. Through these initiatives, the Group demonstrates its dedication to integrating social and environmental impact into its business strategy.
I&M wants to expand its solid foundation by utilising subsidiary expansion, strengthening ecosystem alliances, and speeding up digital innovation.
The Group’s 2026 goal of reaching a return on equity above 20 per cent and influencing the lives of over 10 million people in Eastern Africa is still within reach, as the profitability momentum is still strong and asset quality stabilises.