I&M Group posted a 22 percent rise in net profit to Sh10.2 billion in the half-year to June 2026, buoyed by strong growth in operating income and a rising contribution from its regional units.
The lender’s profit before tax grew 15 percent to Sh13.5 billion, while total operating income climbed 23 percent to Sh33.7 billion on the back of growth in both net interest income and non-interest income. Profit before provisions rose 22 percent to Sh18.7 billion.
The group’s regional subsidiaries lifted their share of pre-tax profit to 33 percent, from 25 percent in the same period last year, as Rwanda, Uganda and Tanzania units posted higher earnings.
“Our half-year performance demonstrates the growing strength and resilience of I&M Group across our markets. The strong growth in operating income, combined with the increasing contribution from our regional subsidiaries, reflects the disciplined execution of our diversification strategy,” said I&M Group regional chief executive Kihara Maina.
Net loans and advances grew 15 percent to Sh334 billion while customer deposits rose 18 percent to Sh505 billion, giving the lender a wider funding base for further balance-sheet growth. Total assets expanded 27 percent to Sh746 billion.
The lender maintained a cautious approach to credit risk, raising loan-loss provisions by 38 percent to Sh5.6 billion. Gross non-performing loans nonetheless fell 12 percent to Sh30.1 billion from Sh34.4 billion, with the net non-performing loan ratio improving to 2.3 percent from 4.1 percent a year earlier.
I&M Bank Kenya remained the group’s biggest earner, contributing 67 percent of pre-tax profit and 69 percent of total assets. Its pre-tax profit was largely flat at Sh8.3 billion as revenue gains were offset by a 34 percent rise in provisions to Sh4.2 billion and a 21 percent increase in operating expenses tied to branch expansion.
During the period, the bank issued the first tranche of its Sh20 billion Medium-Term Note programme, drawing Sh23.2 billion in applications against a Sh10 billion target, a subscription rate of more than 232 percent.
I&M Bank Rwanda’s pre-tax profit climbed 53 percent to Sh2.4 billion, lifting its share of group earnings to 20 percent from 14 percent. I&M Bank Uganda’s pre-tax profit rose 225 percent to Sh0.7 billion, while Tanzania’s unit grew pre-tax profit 8 percent to Sh0.6 billion. Bank One Mauritius, the group’s joint venture with CIEL Group, saw pre-tax profit slip 3 percent to Sh0.9 billion despite a 14 percent rise in operating income.
Return on equity improved to 17 percent from 16 percent, while digitally active customers rose to 92 percent of the group’s customer base. The group’s share price gained about 64 percent in the first half, from Sh42.45 to Sh69.50, ranking it among the top-performing counters on the Nairobi Securities Exchange.
I&M Group operates in Kenya, Uganda, Tanzania, Rwanda and Mauritius, and is regulated by the Central Bank of Kenya, the Capital Markets Authority and the Nairobi Securities Exchange.
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