I&M Group has reported a 22.35 percent increase in net profit for the six months ended June 2026, supported by stronger earnings from lending and growth in other income streams.
The banking group’s net profit rose to Sh10.17 billion from approximately Sh8.31 billion recorded during a similar period last year.
Net interest income, which represents the difference between interest earned from loans and investments and interest paid on deposits and other sources of funding, increased by 22.52 percent to Sh25.04 billion.
The growth came as I&M expanded its lending activities, with its gross loan book rising by 15 percent to Sh333.81 billion from Sh290.26 billion in June 2025.
“Net earnings are up 22.35% to Kes 10.17 billion,” I&M said in its latest financial results. “Net Interest Income is up 22.52% to Kes 25.04 billion.”
The stronger interest income points to increased contribution from the group’s core lending business as the bank continues to expand its customer financing portfolio.
The growth in lending comes against a backdrop of continued credit and funding pressures in the banking sector, with lenders having to balance loan expansion with the ability of borrowers to service their debts.
I&M’s customer deposit base also expanded during the period, increasing by 17.65 percent to Sh505.16 billion from Sh429.38 billion a year earlier.
The larger deposit base provides the group with additional customer funds to support lending activities and investments while strengthening its funding position.
Beyond interest earnings, I&M recorded significant growth in non-interest income. Revenue from fees, commissions and other non-lending activities increased by 24.5 percent to Sh8.66 billion.
The performance points to a broader improvement in the group’s revenue streams as it seeks to reduce reliance on traditional interest income.
The lender also recorded an improvement in asset quality during the period, with gross non-performing loans declining by 12.39 percent to Sh30.11 billion from Sh34.37 billion in June 2025.
Net non-performing loan exposure fell to Sh7.58 billion from Sh11.88 billion over the same period.
The reduction in bad loans provides some relief to the group as it expands its lending portfolio, potentially limiting pressure on provisions for credit losses and supporting profitability.
The improvement in asset quality also comes as Kenyan banks continue to focus on recovering troubled loans and strengthening their risk management systems amid challenging economic conditions.
I&M’s stronger earnings, coupled with growth in its loan and deposit books, point to continued expansion of the banking group during the first half of 2026.
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