I&M Group PLC, Eastern Africa's leading financial partner for growth, announced today that its profit after tax for the first three months ending March remained stagnant at Sh2.5 billion.

The company attributed this static profit to a significant rise in loan loss provision, which increased from Sh480.7 million to Sh1.6 billion, as non-performing loans surged.

During the period, the volume of non-performing loans saw a substantial 24 per cent increase, reaching Sh29.3 billion.

These factors put pressure on I&M Group's financial performance, impacting its profit margin for the first quarter.

Commenting on the challenging conditions faced by the company, Sarit Raja Shah, Group Executive Director of I&M Group PLC, acknowledged the impact of rising inflation and the high cost of doing business.

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Shah emphasized the company's commitment to customer-centricity and digital transformation through their group-wide iMara 2.0 strategy.

"Our continued investments in the group-wide iMara 2.0 strategy that focuses on customer centricity and digital transformation as well as the on-going strategic partnerships, have continued to give value to our customers and stakeholders. We look forward to a continued positive trajectory in the coming quarters," said Shah.

While the loan loss provisions weighed on I&M Group's profitability, the company's operating expenses, excluding loan loss provisions, amounted to Sh4.4 billion.

This figure represents a 30 per cent year-on-year increase, primarily driven by the company's sustained investments in technology and human resources across its various jurisdictions.

Kihara Maina, the Group's Regional CEO, expressed optimism for the future and the company's strategic direction.

Maina highlighted the momentum gained from a successful performance in 2022 and emphasized the importance of the iMara 2.0 strategy in positioning I&M Group as a leading financial partner for growth in Eastern Africa.

"Coming into 2023, we have seen good momentum from a great performance in 2022. As we roll out the final year of our iMara 2.0 strategy, we remain confident in the progress we have made and look forward to taking the lessons into our next strategy in further steering I&M Group as Eastern Africa's leading financial partner for growth," stated Maina.

Maina further underscored the company's commitment to enhancing digital capabilities and developing customer-focused products and services as key areas of focus for I&M Group moving forward.

Despite the challenges faced during the first quarter, I&M Group PLC remains optimistic about its future performance, buoyed by its strategic initiatives and commitment to delivering value to its customers and stakeholders.

As the company progresses through the final year of its iMara 2.0 strategy, it anticipates a positive trajectory in the upcoming quarters.