I&m Group H1 2026 Net Profit Rises 20.3% to KSh9.31B

In Short

• I&M Group reported a 20.3% rise in net profit to KSh9.31 billion for the six months ended June 2026.
• Growth came from higher net interest income and higher non-interest income, which includes fees and commissions.
• Subsidiaries contributed about a third of pre-tax profit, up from about a quarter a year earlier.

What Happened

I&M Group’s half-year results show profit growth even as costs rose. The bank said net profit for H1 2026 increased to KSh9.31 billion from KSh7.73 billion a year earlier.

Net interest income, which is the spread between interest earned on loans and interest paid on deposits, grew 22.5% to KSh25.03 billion. Non-interest income, which covers items like transaction fees, commissions, and trading income, rose 24.5% to KSh8.65 billion. This lifted operating income to KSh33.69 billion.

The group said its subsidiaries contributed KSh13.13 billion in pre-tax profit, around one-third of the total. In Kenya, pre-tax profit was largely flat at KSh8.3 billion as an 18% revenue increase was matched by a 21% rise in operating expenses.

I&M also highlighted bancassurance growth in Kenya. Bancassurance is selling insurance through bank channels, similar to adding insurance at checkout, and it posted 56% growth in pre-tax profit to KSh425 million.

Expenses increased 27.8% to KSh20.56 billion, linked to branch expansion, brand spend, and staffing. Loan loss provisions rose 37.7% to KSh5.59 billion, even as non-performing loans fell to KSh30.1 billion from KSh34.36 billion.

Why It Matters

For East Africa’s banking market, I&M Group’s results signal that regional diversification is contributing more to profits. Rwanda and Uganda stood out, while Mauritius dipped slightly.

The update also shows the trade-off many banks face in 2026. They are growing income and assets, but also spending more on distribution, staff, and risk costs, especially provisioning for potential loan defaults.

I&M said its asset base rose 26.9% to KSh746.31 billion, with the loan book up 14.8% to KSh333.81 billion. Deposits grew 17.6% to KSh505.16 billion, which supports future lending capacity and liquidity.