I&M Holdings on Thursday reported a 29% reduction in profits for the half financial year ended June 30, 2020 to Ksh3.1 billion from Ksh4.5 billion posted at a similar period last year.
The shrink is attributable to a slowdown in the economy occasioned by the COVID-19 pandemic. This comes months after I&M’s stock was ranked as the most attractive by Cytonn Investments in June.
The group’s balance sheet grew to Ksh340.6 billion up from Ksh317 billion with loans and advances to customers accounting for Ksh184.6 billion of the Ksh340.6 billion posted at the end of the first half of 2020.
During the period under review, customers deposited Ksh252.5 billion up from the Ksh229.7 billion posted at the end of June 2019.
Interest income fell to Ksh6.9 billion from Ksh7 billion as non-interest income fell to Ksh4 billion from Ksh7.97 billion.
Profit before tax stood at Ksh4.5 billion at the end of June 2020 down from Ksh6.2 billion. Shareholders’ equity rose from Ksh62 billion from Ksh55.4 billion.
The group is however staring at liabilities worth Ksh278.6 billion.
Earnings Per Share (EPS) also plunged to Ksh3.69 from Ksh10.38.
The company’s board, due to the uncertain business climate, declined to declare payment of dividends for the period and has instead opted to tread cautiously, a strategy adopted by a large percentage of companies listed at the Nairobi Securities Exchange (NSE).