I & M Holdings HY’22 EPS increased 15.98% y/y, on an adjusted basis following the bonus issue in 2021, to KES 2.83 higher than our expectations. PAT increased 15.91% y/y to KES 4.93Bn driven by a 21.62% y/y increase in Total operating income to KES 15.58Bn supported by income from government papers. However, the gain in income was weighed down by a 19.27% y/y rise in Operating expenses to KES 8.60Bn on the back of increased provisioning. Customer deposits grew 13.16% to KES 313.18Bn while the loan book grew 13.02% to KES 231.07Bn leading to a flat Loan to deposit ratio at 73.78%. We continue to see the effect of the yield curve steepening as the fair value loss from government securities, at KES 5.56Bn, compared to the FVOCI securities jumped to 10.16% higher than 0.33% in HY’21. At the current growth rate, we expect the lender to close FY’22 at a PAT of KES 10.19Bn being a 25.35% y/y growth.