I&M Bank has posted a decline in Net Profit to Sh3.2 Billion for the six months ended 30th June 2020. This is against a Net Profit of Sh 4.5 Billion over a similar period last year.
The Kenyan-based I&M Holdings, which has a presence in 4 other regional countries of Tanzania, Rwanda, Uganda and Mauritius also announced a slight decrease in revenues from Sh9 billion to Sh8 billion.
The Group’s unaudited financial statements for the six months period ended 30th June 2020, shows that its net interest income declined to Sh 6.9 Billion from Sh 7 Billion while Net fees and commissions dropped from Sh 1.99 Billion to Sh 1.89 billion.
The lender’s revenue decreased slightly from Sh 9 Billion to Sh 8.8 Billion, pushing down Net operating income from Sh 10.3 Billion to Sh 9.9 Billion.
The Group’s Total Comprehensive Income declined from Sh 4.7 Billion to Sh 3.3 Billion with what equity holders of the firm possess decreasing to Sh 3 Billion from Sh 4.5 Billion.
I&M balance sheet grew from Sh 317.1 Billion to Sh 340.6 Billion, driven by growth in loans to customers from Sh 172.2 Billion to Sh 184.6 Billion.
Customer deposits increased to Sh 252.5 Billion from Sh 237.2 Billion with Total Shareholders Equity increasing from Sh 55.4 Billion to Sh 62.1 Billion.
Earnings per share, which measures the profitability of a firm, declined from Sh 10.38 to Sh 3.69. The lender’s operating profit declined to Sh 5.1 Billion from Sh 5.8 Billion.
The Kenyan subsidiary accounted for the largest portion of the Group’s Net earnings at Sh 3.4 Billion.
This is compared to Tanzania (Sh 116.2 Million), Rwanda (Sh 238.3 Million), Uganda (Sh 1.4 Million) with the business in Mauritius suffering a net loss of Sh 584.3 Million.
Kenya’s business also has the largest balance sheet size, at Sh 306.3 Billion. This is compared to Tanzania (Sh 24 Billion), Rwanda (Sh 39.8 Billion), Mauritius (Sh 4.6 Billion) and Uganda (Sh 7.9 Billion).
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