I&M Bank Records Ksh10.2B Profits, Customer Base Grows to 1.1 Million

The I&M Bank Group, which has operations in five African markets, has announced a 22% jump in profit after tax for the first half of 2026 to Ksh10.2 billion. This marks the first time the bank has hit the Ksh10 billion profit milestone in its half year earnings.

Speaking while announcing the results on Thursday morning in Nairobi, the group's Regional CEO Kihara Maina said profit before tax rose 15% to Ksh13.5 billion, while total operating income grew by 23% to Ksh33.7 billion compared to a similar period in 2025.

Maina added that the strong performance was driven by growth in both interest income and non-interest income across the Group’s markets, as well as an increased contribution from its regional subsidiaries.

"Our half-year performance demonstrates the growing strength and resilience of I&M Group across our markets. 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," he told investors.

Kenya made the biggest contribution to the profit before tax, accounting for 67%. This was driven by an increase in total operating income to Ksh21.4 billion, up from Ksh18.7 billion in a similar period in 2025, while profit before tax stood at Ksh8.3 billion.

Rwanda followed with a 20% contribution, where total operating income grew by 32% while profit before tax increased by 53%. Other markets included Uganda at 6%, Tanzania at 5% and Mauritius at 3%.

The bank's total assets grew by 27% to Ksh746 billion, while total deposits increased by 18% to Ksh505 billion. Net loans and advances grew by 15% to Ksh334 billion, while return on equity remained strong at 17%.

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Gross non-performing loans, on the other hand, dropped by 12%, from Ksh34 billion in the first half of 2025 to Ksh30 billion in 2026.

The bank's customer base grew from 851,000 in 2025 to 1.1 million in 2026, with 92% being digitally active customers, underscoring technology as a key pillar of its strategy. This surpassed the estimated 86% target set by the bank under its iMara 3.0 strategy and the Group’s regional diversification strategy.

In terms of growth, the bank's wealth management business, I&M Capital, which offers products such as the Wealth Fund and Fixed Income Fund and was launched about two years ago, experienced robust growth in assets under management. Assets under management grew from Ksh19 billion in 2024 to Ksh70 billion in 2025 and Ksh127 billion in 2026, representing an 81% year-on-year growth.

The Wealth Fund, USD Fixed Income Fund and offshore accounts dominated performance, contributing 96% of the revenue.

"I&M Capital, our wealth management subsidiary delivered strong revenue growth, underpinned by robust growth in assets under management. We have also maintained a prudent approach to credit risk while strengthening asset quality, capital and liquidity," Maina added.

According to the lender, investor appetite increased largely because of the declining interest rate environment and a relatively low entry point into wealth building. With the Wealth Fund, investors can start building wealth with as little as Ksh2,000 and benefit from compounding interest.

In the bancassurance sector, total revenues increased by 49% to Ksh527 million, underpinned by growth in commission income and driven by sustained growth from the traditional client segment and increasing penetration of the MSME market.

The strong performance also contributed to a positive performance in the bank's share price, which rose by around 64% from Ksh42.45 at the beginning of 2026 to Ksh69.50 on June 30, 2026.

The bank also made strides in its social impact agenda, investing Ksh270 million across initiatives such as scholarships, business support and environmental sustainability, impacting more than 500,000 lives in the process.

"The strong H1 performance gives us confidence in the progress we are making under our iMara strategy and the strength of the foundation we have built for the future. Looking ahead, our focus is on sustaining this momentum by accelerating our transformation, deepening our customer relationships and growing our market share across our key segments," he concluded.