I&M Group Posts 19% Profit Growth to Ksh5B in Q1 2026

I&M Group has posted a strong set of results for the first quarter of 2026, reflecting solid growth across profitability, revenue streams, and its regional operations, even as the lender continues to invest heavily in expansion and customer acquisition.

The Group reported a 19 per cent increase in Profit After Tax to Ksh 5.0 billion, up from Ksh 4.2 billion recorded in the same period last year. Profit Before Tax rose by 9 per cent to Ksh 6.4 billion, supported by improved performance in lending and steady contributions from its subsidiaries.

Total revenue grew by 24 per cent to Ksh 16.1 billion, driven mainly by a strong performance in interest income. Net interest income jumped 31 per cent to Ksh 12 billion, reflecting increased lending activity and better asset yields. Non-interest income rose by 7 per cent to Ksh 3.8 billion, supported by fees, commissions, and other banking services.

The Group’s balance sheet continued to expand during the period under review. Total assets increased by 31 per cent to Ksh 743 billion, while customer deposits grew by 26 per cent to Ksh 512 billion, showing sustained confidence from customers across its markets. The loan book expanded by 10 per cent to Ksh 323 billion as credit demand remained steady.

One of the standout highlights was customer growth, which rose by 42 per cent year-on-year. The Group attributed this increase to its expanding digital banking channels, wider product offerings, and deeper market penetration across the region.

At the same time, operating expenses climbed by 28 per cent, mainly due to investments in branch expansion, staff training, and strengthening of its distribution network. While this increases costs in the short term, the Group said it aligns with its long-term growth strategy.

Asset quality showed improvement, with net non-performing loans dropping by 33 per cent to Ksh 8.4 billion. Gross non-performing loans also eased from Ksh 34 billion to Ksh 32 billion. However, provisions for expected losses rose by 63 per cent as the lender strengthened its buffers against potential risks.

Subsidiaries contributed 31 per cent of Profit Before Tax, underlining the importance of diversified income sources within the Group. The bancassurance arm delivered strong growth, with revenues rising 33 per cent and underwritten premiums surging 148 per cent to Ksh 3.5 billion. Wealth management also posted notable gains, with revenues increasing by 209 per cent to Ksh 229 million.

Capital and liquidity levels remained stable across the Group, supporting continued operational resilience.

Regional Chief Executive Officer Kihara Maina said the results reflect growing trust from customers and the strength of the Group’s regional franchise.

He noted that the institution remains focused on supporting individuals, businesses, and communities with financial solutions that drive growth and long-term prosperity.

He added that the Group continues to prioritise financial inclusion and customer-centric innovation as it scales its operations across key markets.

Overall, the performance points to a bank that is steadily growing its earnings base, expanding its footprint, and strengthening its financial position despite a rising cost environment.