I&M profit jumps by one-third due to higher interest income
DAR ES SALAAM: I&M Bank’s net profit has increased by 38.5 per cent in this year’s third quarter, derived from the increased net interest income.
The bank’s financial statement released yesterday showed the profit after tax increased to 3.84bn/- up from 2.77bn/- registered in a similar period last year.
The robust performance attributed to the increase in net interest by 81 per cent to 18.5bn/- until last September up from 10.2bn/- posted in a similar period last year.
Despite the increase, the lender’s loan portfolio in Q3 slightly went down compared to record set in the previous quarter ended in June.
Until the end of September, I&M managed to issue loans worth 430bn/- from 447bn/- registered in Q2 ended June.
Equally, the lender’s total assets grew by almost 3.0 per cent to 782bn/- from 759bn/- reported in the previous quarter.
Additionally, non-interest income also decreased by 1.28 per cent to 3.44bn/- until the end of September from 3.48bn/- posted in the same period last year. The decrease was attributed to foreign currency dealings and translation gains.
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The lender’s foreign currency dealings and translation gains decreased to 1.81bn/- until the end of last month from 2.15bn/- posted in the same quarter last year, equivalent to 16.1 per cent despite the increase in fees and commissions.
Bank’s fees and commissions increased by almost 10 per cent to 1.62bn/- at the end of September from 1.47bn/- registered in the same quarter of the preceding year.
Additionally, the lender’s customer deposits according to the statement increased to 621bn/- until the end of last month up from 592bn/- recorded at the end of the second quarter ended in June. The increase signifies the customers trust to the bank.
Non-performing loans (NPLs) ratio stands at 11.6 per cent in three months to September slightly up from 11 per cent recorded in three months June over double the central bank’s threshold of 5.0 per cent.
Furthermore, I&M’s non-interest expenses increased by 25.5 per cent to 11.4bn/- in Q3 up from 9.08bn/- posted in the similar quarter last year.
The bank attributed the non-interest expense increment to the increased salaries and benefits and fees and commission.
The lender’s salaries and benefits increased to 4.40bn/- at the end of September against 3.74bn/- in a comparative quarter of a previous year.
The increase in salaries is primarily due to increased number of staff to 206 in quarter three from 190 recorded in previous quarter last year. Despite the increase of staff, the bank’s number of branches remained eight.
