I&M Bank reaps big from Bank One

I&M Bank doubled its net profit last year thanks to a five-fold income growth by its Mauritius subsidiary and an increase in non-interest income.

I&M acquired a 50 per cent stake in Bank One Ltd of Mauritius in 2008 during a loss cycle, but the subsidiary grew its first full year earnings before tax since the acquisition nearly five times to stand at $6.7 million.

I&M Bank Mauritius and Tanzania contributed 16 per cent of the total profits, a departure from the previous year when the Kenyan unit accounted for almost all of the group’s earnings.

“The Mauritius subsidiary has performed exceptionally well, fuelled by growth in its lending business,” said Suprio Sen Gupta, the general manager at I&M Bank.

The Kenyan unit benefitted from the economic upturn last year that lifted the fortunes of the banking industry in general by driving up interest on heightened demand for loans by individuals and businesses.