I&M Group's profit after tax for the three months to March 31 remained unchanged at Sh2.7 billion, compared to the same period in 2022.
The lender attributes this to growth in expenses and provisions during the period.
"This is despite the 29 per cent growth in total operating income at Sh9.6 billion, up from Sh7.4 billion reported during the same period last year," the lender said in a statement.
The group's executive director Sarit Raja Shah said the quarter posed challenges amidst rising inflation and the high cost of doing business.
The balance sheet grew steadily with total assets increasing by Sh41.4 billion to Sh472.6 billion.
On the other hand, loan portfolio grew by 18 per cent to Sh257.7 billion partly attributed to the extension of retail lending through the bank’s digital platforms.
Net non-performing loans stood at Sh10 billion, a result the lender says is a reflection of the challenging macro-economic environment.
Customer deposits closed the quarter at Sh324.7 billion, a five per cent increase year-on-year, largely attributed to growth in Current Accounts and Savings Accounts.
The Kenyan subsidiary posted a 16 per cent increase in profit before tax for the period under review, driven by a 28 per cent growth in the operating income.
CEO Gul Khan said the bank takes take pride in their customer-centricity evidenced by the net promoter score closing at 54 per cent against the banking sector average of 38 per cent in the country.
"This, as we plan to roll out several new branches over the next couple of years as we seek to enhance our distribution and visibility,” Khan said.
The Group’s regional subsidiaries continued to show steady growth, contributing 17 per cent to the Group’s overall profitability.
"During the period under review, 77 per cent of I&M Group customers across the region were digitally active. Non-branch transactions also increased to 76 per cent," the lender says in part.
