I&M and Diamond Trust in profit rise, Crown dips

I&M and Diamond Trust in profit rise, Crown dips

I&M Bank branch in Nyeri. FILE PHOTO | NMG I&M Holdings posted a 12.77 per cent rise in net profit in the half year ended June, boosted by increased non-interest income.

The lender’s net profit stood at Sh3.86 billion in the period compared with Sh3.43 billion the year before.

I&M Holdings’ non-interest income grew by 34.43 per cent from Sh2.76 billion to Sh3.72 billion in the period.

The bank’s net interest income remained flat at Sh6.86 billion even as the loan book grew 12.65 per cent to Sh162 billion from Sh144.5 billion last year.

I&M’s loan loss provisions jumped 46.22 per cent to Sh1.41 billion, up from Sh965.5 billion amid a 118.08 per cent surge in gross defaults to Sh22.3 billion.

Diamond Trust Bank’s (DTB) net profit for the half-year period ended June 30 grew by 10.05 per cent to hit Sh3.75 billion from Sh3.41 billion posted in a similar period last year.

Net interest income for the lender increased by 3.96 per cent to Sh10.36 billion from Sh9.96 billion recorded in 2017.

Operating income increased by 4.79 per cent to Sh13.10 billion from Sh12.5 billion in 2017.

However, DTB’s board did not propose payment of an interim dividend.

The banks’ performance mirrors that of Nairobi Securities Exchange-listed lenders that have reported increases in profits for the half year.

KCB Group announced earlier a 17.48 per cent net profit increase to Sh12.1 billion, while Equity’s rose 17.52 per cent to Sh11 billion and Co-op Bank’s stood at Sh7.14 billion.Stanbic Holdings’ net earnings more than doubled to Sh3.55 billion.Meanwhile, Crown Paints Kenya’s after-tax profit for the half-year has dropped by 32.68 per cent on the back of increased cost of raw materials.The NSE-listed paint manufacturer’s net earnings declined to Sh40.7 million in the six months period to June from Sh60.46 million recorded in 2017.Crown says adoption of new accounting standards (IFRS 9) also had an impact on its financials as the total impairment allowance and provisions for the company increased by Sh972 million in addition to the Sh346 million as at December 31, 2017.

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