I&M Group Posts 36% Profit Surge Driven by Strong Interest Income in H1 2025
I&M Group Delivers Strong Half-Year Results Amidst Banking Sector Competition
I&M Group has released its unaudited financial results for the six months ending June 30, 2025, showing a robust profit surge that underlines the lender’s resilience and strong positioning in Kenya’s competitive banking industry.
The Group posted a net profit of KSh 8.31 billion, a 36.35% increase compared to KSh 6.09 billion in fight half (H1) 2024. This strong growth reflects improved operational efficiency, disciplined cost management, and sustained income diversification.
Strong Income Growth Drives Performance
The backbone of I&M’s performance was net interest income, which rose 23.74% to KSh 20.43 billion from KSh 16.51 billion a year earlier, supported by improved lending activity and higher interest margins. Non-interest revenue also expanded 12.87% to KSh 6.95 billion, highlighting resilience in fee-based income streams such as digital banking, foreign exchange, and transaction fees.
As a result, total income jumped 20.79% to KSh 27.39 billion. Even after accounting for credit loss provisions of KSh 4.07 billion (a 17.37% increase), net income after provisions stood at KSh 23.32 billion, up from KSh 19.21 billion in the previous period.
On the expense side, operating costs rose 11.10% to KSh 12.02 billion, but the increase remained well below income growth. This enabled the Group to deliver a profit before tax of KSh 11.30 billion, representing a strong 34.70% uplift.
| I&M Group 6-months Unaudited Financial Statement | 2025-06-30 | YoY Change | 2024-06-30 | |
|---|---|---|---|---|
| "Millions" | % | "Millions" | ||
| Net interest income | 20,434.78 | 23.74% | 16,513.72 | |
| Non-interest revenue | 6,952.27 | 12.87% | 6,159.66 | |
| Total income | 27,387.05 | 20.79% | 22,673.38 | |
| Provision for credit losses | 4,065.76 | 17.37% | 3,464.17 | |
| Total income, net credit losses | 23,321.28 | 21.41% | 19,209.22 | |
| Total operating expenses | 12,022.80 | 11.10% | 10,821.41 | |
| Profit before taxes | 11,298.48 | 34.70% | 8,387.81 | |
| Net profit | 8,312.05 | 36.35% | 6,096.26 | |
| Earnings per share (basic) | 4.51 | 37.92% | 3.27 | |
| Total assets | 588,921.38 | 4.35% | 564,383.25 | |
| Cash & cash balances | 29,379.07 | -14.55% | 34,382.94 | |
| Total liabilities | 475,320.65 | 0.79% | 471,611.98 | |
| Customer deposits | 343,128.90 | 5.90% | 323,999.08 | |
| Total Equity | 113,600.73 | 22.45% | 92,771.27 | |
| @apexhubinsights.com, source: company reports |
Balance Sheet Expansion and Capital Strength
I&M’s balance sheet recorded moderate but steady growth. Total assets expanded 4.35% to KSh 588.92 billion, while customer deposits rose 5.90% to KSh 343.13 billion, reaffirming the Group’s strong customer base and liquidity profile.
Total equity surged 22.45% to KSh 113.60 billion, reflecting robust retained earnings and strengthened capital buffers. On the other hand, cash and cash balances dipped 14.55% to KSh 29.38 billion, suggesting a strategic reallocation of funds into higher-yielding assets.
- To find more about I&M's historical performance, click here.
Key Ratios Show Improved Efficiency and Profitability
The Group’s ratio performance underscored significant operational gains:
- Cost-to-income ratio improved to 43.90% from 47.73%, signaling better efficiency and cost management.
- Return on Assets (ROA) strengthened to 1.41% (from 1.08%), highlighting stronger asset utilization.
- Return on Equity (ROE) improved to 7.32% (from 6.57%), delivering higher returns to shareholders.
- Equity-to-assets ratio rose to 19.29%, from 16.44%, indicating stronger capitalization.
- Debt-to-equity ratio declined to 418.41% (from 508.36%), pointing to a healthier leverage structure.
- Debt-to-assets ratio fell to 80.71% from 83.56%, reflecting reduced reliance on borrowed funds.
Additionally, earnings per share (EPS) rose 37.92% to KSh 4.51, demonstrating enhanced shareholder value.
| I&M Group 6-months Unaudited Financial Statement | 2025-06-30 | 2024-06-30 |
|---|---|---|
| Net interest income | 3.47% | 2.93% |
| Cost-to-income ratio | 43.90% | 47.73% |
| Return on Assets (ROA) | 1.41% | 1.08% |
| Return on Equity (ROE) | 7.32% | 6.57% |
| Equity-to-Assets Ratio | 19.29% | 16.44% |
| Debt-to-Equity ratio | 418.41% | 508.36% |
| Debt-to-Asset ratio | 80.71% | 83.56% |
| @apexhubinsights.com, source: company reports |
Investor Outlook: Positioned for Sustainable Growth
For investors, I&M’s H1 2025 results present a positive growth story, characterized by rising profitability, expanding income streams, and improved efficiency metrics. The Group’s ability to grow earnings faster than expenses, while simultaneously strengthening its equity position, underlines its financial resilience.
The improvements in ROA, ROE, and cost-to-income ratio suggest that I&M is enhancing both operational leverage and capital efficiency, making it an attractive proposition for shareholders seeking stability and growth.
However, the increase in credit loss provisions indicates that management remains cautious about loan book quality amid a volatile macroeconomic environment. Similarly, the decline in cash balances may prompt investor focus on liquidity management strategies going forward.
Overall, the results place I&M Group on a strong footing for the remainder of 2025, with clear momentum in profitability and shareholder value creation, making it a bank to watch in Kenya’s financial sector.
- To find more about I&M's historical performance, click here.