I&M Group has crossed the Sh10 billion profit mark in the first half of 2026 with a 22 per cent rise in net earnings.
This was driven by improvement of its asset quality and accelerated regional economic growth.
The banking group reported a profit after tax of Sh10.2 billion for the six months to June 30, supported by a 23 percent increase in total operating income to Sh33.7 billion.
The results were also marked by an improvement in the quality of the lender’s loan book, with gross non-performing loans falling 12 percent to Sh30.1 billion from Sh34.4 billion a year earlier.
The net non-performing loans ratio improved sharply to 2.3 per cent from 4.1 per cent in the corresponding period last year, although the group increased its loan-loss provisions by 38 per cent to Sh5.6 billion, reflecting a cautious approach to credit risk.
Net loans and advances grew 15 per cent to Sh334 billion, while customer deposits rose 18 per cent to Sh505 billion, providing the group with a larger funding base to support lending and balance sheet expansion. Total assets increased 27 percent to Sh746 billion.
I&M Group’s regional businesses continued to play a bigger role in its earnings, with subsidiaries outside Kenya contributing 33 percent of group profit before tax, up from 25 percent in the first half of 2025.
I&M Bank Rwanda was among the strongest performers, with profit before tax rising 53 percent to Sh2.4 billion, while Uganda recorded a 225 percent jump in profit before tax to Sh700 million.
The Tanzania subsidiary posted an 8 percent increase in profit before tax to Sh600 million, while Bank One Mauritius reported a three percent decline to Sh900 million, weighed down by higher credit provisions and investments in human capital and brand development.
In Kenya, which remains the group’s largest market, accounting for 67 per cent of group profit before tax, earnings before tax remained broadly flat at Sh8.3 billion.
Higher loan-loss provisions and a 21 per cent rise in operating expenses offset strong revenue growth.
The lender said its provisions at the Kenyan business rose 34 percent to Sh4.2 billion amid prevailing domestic economic conditions and geopolitical uncertainty.
Regional CEO Kihara Maina said the half-year performance reflected the growing contribution of the group’s diversification strategy and investments in technology, customers and distribution.
"The strong growth in operating income, combined with the increasing contribution from our regional subsidiaries, reflects the disciplined execution of our diversification strategy and the value of the investments we continue to make in our customers, people, technology and distribution network," said Maina.
The group also recorded 41 percent revenue growth from its MSME segment, while financing accessed through digital channels reached Sh15.7 billion.
Digital businesses and ecosystem partnerships contributed 21.7 percent of retail and business banking operating income, up from 14 percent a year earlier.
I&M’s share price rose about 64 percent during the first half, closing June at Sh69.50, up from Sh42.45 at the start of the year.
Looking ahead, the group said it will focus on expanding market share, deepening customer relationships and maintaining disciplined credit-risk management as it pursues growth across Eastern Africa.
