I&M Bank has announced a 9% after-tax profit growth for the full year 2016 full year. CEO Kihara Maina noted the results were largely satisfactory given the severe operating environment the industry.
He pointed out that the core banking business of intermediation involving the pricing of risk was considerably impacted by the interest rate capping which makes it a challenging environment for both customers and the bank.
While the group assets registered an impressive growth of 10.3 percent to close at Ksh182.1 billion up from Ksh165 billion, the firm’s pre-tax profit recorded a marginal rise of 3% to close at Ksh9 billion up from Ksh8.7 billion posted the previous year.
Increased customer lending accelerated the firm’s loan and advances book to Ksh120.7 billion up from Ksh114.9 billion representing a 5% growth. Interest income generated from customer loans and advances including placements on government securities increased by an 11% margin to close at Kshs 21.7 billion up from Kshs 19.6 billion posted the previous year.
Mr Maina said the bank was in the middle of undertaking comprehensive structural re-alignments for growth. He added I&M Bank would take a cautious, informed approach to the recent changes in laws affecting banking.
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