I & M Holdings FY’21 EPS increased 0.82% y/y, on an adjusted basis following the bonus issue in 2021, to KES 4.92 higher than our expectations. PAT increased 2.51% y/y to KES 8.62Bn driven by a 22.18% y/y increase in Total operating income to KES 19.86Bn supported by income from government papers. However, the gain in income was weighed down by a 40.79% y/y rise in Operating expenses to KES 17.75Bn on the back of increased provisioning. Customer deposits grew 12.97% (lower than our forecast of +20.07% y/y) to KES 296.75Bn while the loan book grew 12.40% to KES 210.62Bn (lower than our forecast of +22.03% y/y).
