I&M Q1 profit falls to Ksh.1.6 billion

I&M bank has posted a 5.9 per cent deceleration in profitability in the quarter ended in March with earnings falling to Ksh.1.6 billion from Ksh.1.7 billion last year.

The marginal decline in profitability is largely attributable to a rise in operating expenses in the three months period.

The bank for instance saw its non-interest based costs soar by 16 per cent to Ksh.2.9 billion after raising its loan-loss provisions to Ksh.704.9 million from Ksh.538.8 million.

In contrast operating income only grew by a fraction 6.1 per cent to Ksh.5.2 billion on improved earnings from interests on customer loans.

This is while non-interest funded income shrunk by 15.8 per cent to Ksh.1.6 billion from Ksh.1.9 billion.

I&M gross non-performing loans rose in tandem with provisions to Ksh.21.1 billion from a lower Ksh.19.5 billion in March last year.

The bank’s asset base remained relatively unchanged at Ksh.305.4 billion in the quarter with net loans growing by 5.7 per cent to Ksh.169.7 billion.