I&M Holdings has reported a 30 per cent drop in net profits for the nine months to September 2020 as lenders continue absorbing the shocks of the Covid-19 pandemic.
The financial statements released on Monday shows that the Group's earnings contracted from Sh6.6 billion last year to Sh4.5 billion this year. The lender had other income of Sh606 million, lifting its total comprehensive income to Sh5.1 billion in the reporting period, compared to a total comprehensive income of Sh6.9 billion in 2019.
Its top line also shrunk marginally from Sh10.5 billion to Sh10.4 billion in the period under review on higher interest expenses. Its operating expenses rose by eight per cent from Sh6.7 billion to Sh7.3 billion
The company holds 50 per cent stake in Bank One Limited, a joint venture in a bank licensed in Mauritius. It also fully owns I&M Bank, I&M Capital, I&M Realty Limited, Giro Limited and BCR Investment Company Limited and has stakes in various companies in Kenya, Tanzania, Rwanda, Mauritius and Uganda.
The Covid-19 pandemic has pushed banks to make high loan loss provisions and this has accounted for decline in earnings for most players in Kenya.
Last week, a deep loan loss provision saw NCBA Group report a 45 per cent drop in its net profit to Sh2.5 billion in the nine months to September 2020.
This is despite more than doubling its interest income from Sh15 billion to Sh31.1 billion in the period, following the NIC and CBA merger to form NCBA last year.