I&M Group reported a stronger first quarter in 2026, with profit after tax rising 19% year on year to KES 5.0 billion, from KES 4.2 billion in Q1 2025. Profit before tax increased 9% to KES 6.4 billion, while total revenue grew 24% to KES 16.1 billion.
The main driver of performance was growth in net interest income, which rose 31% to KES 12 billion. This suggests the bank earned more from its core lending and interest-earning assets. Non-interest income grew more slowly, up 7% to KES 3.8 billion.
The balance sheet also expanded. Total assets increased 31% to KES 743 billion, customer deposits rose 26% to KES 512 billion, and the loan portfolio grew 10% to KES 323 billion. The faster growth in deposits than loans points to stronger funding growth, while asset expansion was also supported by increased investment in government securities.
Asset quality improved during the period. Net non-performing loans fell 33% year on year to KES 8.4 billion, while gross non-performing loans declined from KES 34 billion to KES 32 billion. However, provisions increased 63% year on year, meaning the Group set aside significantly more money to cover potential credit losses. That points to a more cautious risk position, even as reported asset quality improved.
Costs were a key pressure point. Operating expenses rose 28%, mainly due to branch expansion, staff development, brand investment, and upskilling. In Kenya, operating expenses increased 25% year on year, partly because of the Mahali Uko, Tuko campaign, under which the bank added 12 branches since Q1 2025.
I&M Bank Kenya, the Group’s largest business, reported a 16% rise in profit after tax to KES 3.3 billion, up from KES 2.8 billion in Q1 2025. Its operating income increased 21%, supported by net interest income growth and expansion across business segments. Customer deposits in Kenya grew 25%, while the gross non-performing loan ratio remained stable at 12.7%.
Regional subsidiaries also contributed meaningfully. Subsidiaries accounted for 31% of Group profit before tax. Rwanda’s PBT rose 14% to KES 850 million, Tanzania’s rose 45% to KES 469 million, and Uganda’s rose 169% to KES 304 million. Mauritius, through Bank One, was the weaker regional performer, with PBT declining 6% to KES 444 million despite a 14% increase in total assets.
The Group’s fee and adjacent financial services businesses also grew. Bancassurance revenue increased 33%, supported by a 148% rise in underwritten premiums to KES 3.5 billion. Wealth management revenue rose 209% to KES 229 million. These businesses helped diversify income, although the Group’s earnings growth still appears mainly driven by net interest income.
Overall, I&M Group performed better in Q1 2026 than in Q1 2025. Profit, revenue, deposits, assets, loans, and customer numbers all increased. The strongest positives were higher net interest income, deposit growth, regional subsidiary performance, improved non-performing loan figures, and growth in bancassurance and wealth management.
The main negatives were rising operating costs and a sharp increase in provisions. Profit growth was also slower than revenue growth, with profit before tax up 9% against revenue growth of 24%, suggesting that costs and credit provisioning absorbed a meaningful part of the income growth.
On balance, the bank is doing better, but the quality of that improvement depends on whether it can contain costs and provisions in the coming quarters. The Q1 numbers show a growing bank with stronger revenues and improved asset quality, but also one spending heavily on expansion and taking a more cautious approach to credit risk.
