I&M bank headquarters in Nairobi. [ photo / Money and markets. ]
I&M holding limited bank recorded a 22.2 per cent drop in profit after tax for the six months to September following the fall in the income from loans and the increasing costs of its staff.
In a financial report released on Monday by the lender, the profit after tax recorded this year was Sh3.867 billion down from Sh4.970 billion recorded during a similar period last year with the fall being linked to the tight interest cap rates introduced last year.
According to the I&M holdings Chief executive officer, Kihara Maina ,the financial report released yesterday was compiled as of September 30 and it covered both the I&M Bank Limited and I&M Insurance Agency.
However, the group's non-interest revenue expanded by Sh 280 million to close at Sh 3.276 billion from Sh 2.996 recorded the previous year despite the interest income falling significantly to Sh 15.169 billion from Sh 15.799 billion similar period last year.
The report further shows that the holdings staff and employees cost rose under the period to Sh 2.189 billion from Sh 1.959 billion recorded in a similar period last year.
The total deposits made also dropped by 6.9 per cent to Sh 5.085 billion as the total income interest also recorded a drop 7.7 per cent to close at Sh 11.388 billion.
Despite all the challenges, I&M bank defied all odds and recorded an improvement in loans and advances to its customers as it went up by 10.9 per cent to Sh 133.19 billion.