I&M Group wrapped up FY2025 with a strong rise in profitability, underpinned by robust balance sheet expansion, improved funding efficiency, and a solid uptick in non-interest income, even as lending income softened.
Profit after tax attributable to shareholders climbed to KSh 18.8 billion from KSh 14.7 billion in 2024, marking a 27.6% increase. The growth was largely driven by a notable decline in interest expenses alongside a surge in total operating income, which rose to KSh 60.3 billion from KSh 50.6 billion.
Total assets expanded by 15% to KSh 668.9 billion, supported by growth in loans and advances to customers, which increased to KSh 306.3 billion, while customer deposits rose 17% to KSh 483.9 billion.
Net interest income grew 16% to KSh 45.9 billion despite a drop in income from loans and advances, which slipped to KSh 45.6 billion. This points to either a more cautious lending environment or loan repricing. However, the impact was cushioned by a sharp fall in interest expenses, particularly on customer deposits, reflecting improved funding costs.
Non-interest income also recorded strong growth, rising to KSh 14.4 billion from KSh 11.0 billion, driven by higher fees, commissions, and gains from other income streams.
Asset quality improved, with gross non-performing loans declining to KSh 31.4 billion, while net NPLs fell significantly to KSh 8.9 billion from KSh 13.4 billion in 2024.
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The Group’s capital position strengthened, with total capital rising to KSh 118.6 billion and all regulatory ratios remaining above required thresholds. Liquidity improved as well, with the liquidity ratio climbing to 59.7%, comfortably above the 20% minimum, signalling solid short-term resilience.
Operating expenses increased to KSh 36.9 billion, though income growth outpaced costs, supporting overall profitability gains.
The Group declared a total dividend of KSh 3.75 per share for FY2025, up from KSh 3.00 in 2024, reflecting confidence in earnings sustainability and capital strength.
