I&M Group PLC, a Nairobi-based financial services group, reported its strongest quarterly profit in its history in the first three months of 2026, supported by higher lending income, steady fee growth, and continued expansion across East Africa.

For the quarter ended March 31, 2026, the group posted a profit of KSh5.04 billion ($38.9 million), rising from KSh4.22 billion ($32.6 million) in the same period a year earlier. The result marked the first time the lender has crossed the KSh5 billion mark in a single quarter, reflecting firmer earnings across its core banking operations.

Total operating income increased to KSh16.14 billion ($124.6 million), up from KSh12.97 billion ($100.2 million) a year earlier. The improvement was largely driven by stronger performance in lending activities and investment income across its regional markets, where the group continues to scale its retail and corporate banking services.

Net interest income rises sharply

Net interest income rose to KSh12.29 billion ($94.9 million), compared with KSh9.38 billion ($72.4 million) in the prior-year period. The increase was supported by higher loan volumes and improved pricing, even as funding costs edged higher. The growth suggests the bank was able to maintain a stable spread between what it earns from lending and what it pays for deposits.

Non-interest income also recorded gains, climbing to KSh3.85 billion ($29.7 million) from KSh3.59 billion ($27.7 million). The rise was supported by higher fees and commissions as well as stronger foreign exchange trading income. Fees from loans increased to KSh766.18 million ($5.9 million), while other fees eased slightly to KSh1.19 billion ($9.2 million). Foreign exchange trading income improved to KSh998.37 million ($7.7 million).

Operating costs rose during the period, reaching KSh9.9 billion ($76.4 million) from KSh7.29 billion ($56.3 million), as the group expanded its operations. Staff costs increased to KSh2.92 billion ($22.5 million), while loan loss provisions rose to KSh2.61 billion ($20.15 million), indicating a more cautious approach to credit risk in a shifting interest rate environment.

I&M Bank Rwanda Plc headquarters, Kigali, Rwanda.

I&M Group’s total assets increased to $5.73 billion

I&M Group operates across Kenya, Tanzania, Rwanda, Uganda, and Mauritius, serving more than 870,000 customers through its banking and financial services units, including corporate advisory, insurance intermediation, real estate, and investment management.

On the balance sheet, loans and advances to customers increased to KSh322.92 billion ($2.5 billion), up from KSh293.66 billion ($2.2 billion). Customer deposits also climbed to KSh512.1 billion ($3.95 billion), compared with KSh407.04 billion ($3.14 billion), strengthening its position.

Total assets rose to KSh742.51 billion ($5.73 billion), driven mainly by loan growth and higher investment securities. Shareholders’ equity increased to KSh123.30 billion ($952.2 million), supported by retained earnings and improved reserves.

The group maintained solid capital and liquidity positions, with total capital at KSh133.23 billion ($1.02 billion) against risk-weighted assets of KSh628.79 billion ($4.85 billion). Its liquidity ratio stood at 65 percent, well above regulatory requirements.