I&M Holdings has posted a decline of 6% in its Profit Before Tax (PBT) for the year ended 31 December. 2017 closing in at Kshs. 9.9B down from Kshs 10.6B realized in the previous year, where regional business contributes over 20% of overall PBT.
The Group has attributed its performance on the prolonged electoral process in Kenya that largely constrained economic growth of mainly the manufacturing sector and the unintended consequences of interest rate capping.
IMHL Chairman, Daniel Ndonye said that regardless of the negative impact of the interest capping the IFRS 9 spirit is standard.
I&M holdings operates in Kenya, Tanzania, Rwanda and Mauritius where through its subsidiaries, affiliates and joint venture investments, the group has maintained a 14% growth trajectory in its total assets.
The group is looking forward to a double digit growth against their non-funded income stream due to strategic customer propositions. Through provision of innovative and market driven banking solutions to the large, medium & premium clients, the group aspires to be the banking powerhouse in East Africa.
Here are the key highlights from the financials;
- Customer deposits growth by 16% from Kshs 147B in 2016 to Kshs 169B at the end of 2017 while loans and advances to customers increased by 14% to Ksh 153 Billion.
- Profit before tax declined by 6% from Kshs 10.6B in the previous year to Kshs 9.9B in 2017 while net profit declined 23.6% from Kshs 7.3B in 2016 to Kshs 6.8B in 2017.
- Non-funded Income grew by 16% from Kshs 5.0B in the previous year to Kshs 5.8B in 2017.
- Operating expenses grew by 6% which the bank attributed to the recent acquisition
and integration of the former Giro Bank into its system.
- The group closed its financial statement as at 31st December 2017 at 240 billion.
- The bank announced a dividend of KShs 3.50 per share (similar to that of previous year) amounting to KShs.1.5 trillion for the year ended 31 December, 2017. The amount will be paid on 24 May 2018.