I&M Bank shares on Tuesday August 21, 2024 were the biggest gainers at the Nairobi Securities Exchange with a historical appreciation of 66.26 per cent in a single trading day.
The bank’s share price increased from the closing price of Sh. 20.60 per share on August 20, 2024 to end the day at Sh. 34.25 per share, with an intra-day trading high of Sh. 35 per share.
The I&M Bank shares appreciated after the I&M Group released its half year financial results in which net profit grew by 17.4 per cent to Sh. 5.6 billion. According to the financial results, the bank’s net interest income increased by 35.2 per cent to Sh. 16.5 billion in the period ended June 30, 2024.
At the same time, I&M Bank Kenya unit saw its net interest income increase by 37 per cent to Sh. 11.2 billion. Overall, the bank’s regional units contributed 30 per cent to the operating income, which at the end of June stood at Sh. 22.67 billion.
“Operating income was driven by significant growth in the corporate and retail segments which saw increases of 49 per cent and 34 per cent respectively,” I&M Group said in a statement.
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During the period under review, I&M’s loan book grew by 5.3 per cent to stand at Sh. 284.1 billion. Customer deposits grew by 17.5 per cent to Sh. 419.4 billion in the same period.
The lender’s non-funded income decline by 11 per cent to stand at Sh. 6.16 billion. This drop was attributed to a 38 per cent drop in forex trading to Sh. 1.82 billion following the strengthening of the local currency against the US dollar.
In the same vein, operating expenses increased by 14 per cent to Sh. 14.3 billion. This came as staffing costs increased by a fifth to Sh. 4.18 billion.
“Our strategic focus on innovation, customer-centric solutions and market expansion is driving tangible results, allowing us to better meet the diverse needs of our customers while fostering economic empowerment in the markets we operate in,” said I&M Group Regional chief executive officer Kihara Maina.