I&M Group PLC has increased its Profit Before tax by 35% to KES 3.6 billion in Q1 of 2024, up from KES 2.7 billion in the same period in 2023.
The Tier 1 Bank reported strong operating revenues across all its markets, with regional businesses accounting for 24% of the Profit Before Tax.
Operating income was driven by significant growth in the corporate and retail segments, which saw increases of 58% and 33% respectively.
Key Financial Performance Highlights
Balance sheet highlights
▪ The Group’s balance sheet grew steadily, with total assets increasing by 13% over the same period in 2023 to close at KES 533 billion.
▪ The loan portfolio grew by 13% to reach KES 291 billion partly attributable to retail lending and growth in the subsidiary balance sheets.
▪Customer deposits closed at KES 384 billion, an 18% increase year on year, with both Current & Savings Accounts (CASA) and term deposits growing strongly during the period as the Group continued focusing on product innovation and digitization.
▪ The Net Non-Performing Loans stood at KES 14 billion, a reflection of the challenging macroeconomic environment.
Income statement highlights
▪ Operating income recorded a growth of 21% while the Group’s operating profitability increased by 24% year on year to KES 6.4 billion. Loan loss provisions closed at KES 1.5 billion down from KES 1.6 billion in the same period last year as the Group maintained prudence in asset quality management.
▪ Growth in total operating income was driven by a 38% increase in Net Interest Income for the period under review.
▪ The Group’s operating expenses, exclusive of loan loss provisions recorded an increase of 16% year on year to close at KES 5.1 billion driven by continued investment in technology and people across all markets.
Classification: Public
I&M Group Regional CEO Mr. Kihara Maina noted: “The year-on-year increase from 18% to 24% in the subsidiary markets’ contribution to the Group’s Profit Before Tax is an indicator that our iMara 3.0 strategy is off to a strong start. As I&M Bank celebrates its 50th anniversary this year, we will continue to focus on business growth, operational efficiencies, customer centricity, and digital transformation in all our markets for sustained profitability in the years to come”.
I&M Bank Kenya
▪ I&M Bank recorded a 28% increase in Profit Before Tax, resulting from growth in Net Interest Income and a decline in loan loss provisions.
▪ Additionally, the Bank posted an operating income growth of 17% year on year and a 12% increase in operating profit.
▪ The Bank recorded an impressive 239% growth in new-to-bank customer numbers compared to the same period last year.
Commenting on the results, Mr. Gul Khan I&M Bank CEO said, “We are pleased to record an impressive double-digit growth in profit in our first quarter of the year. Our focus on offering relevant financial solutions for Kenyans like free bank to M-PESA transactions to individuals and sole proprietors, strategic branch expansion, and ecosystem partnerships has yielded results as demonstrated by our customer numbers and increase in deposits. As we celebrate our 50th anniversary this year, I would like to thank our customers for choosing I&M Bank and for placing their trust in us”.
Regional growth
▪ Regional subsidiaries of the Group continued to grow steadily, with operating income contribution increasing to 30% from 27% in 2023. For the period ending 31 March 2024, 83% of I&M Group customers across the region were digitally active.
▪ I&M Rwanda reported a 46% increase in operating income and a strong 107% increase in Profit Before Tax for the period under review. The Bank’s strong performance was driven by increased economic activity in the region, with loans and deposits growing by 11% and 20% respectively, which led to growth in Net Interest Income and Non-Funded Income.
▪ In Tanzania, I&M recorded a 43% increase in operating income to close at KES 1.0 billion and 99% increase in operating profit on the back of growth in total assets of 10%. Asset growth was supported by loan growth of 11% while deposits increased by 16%.
Classification: Public
▪ I&M Uganda posted strong growth in operating income of 11% and an operating profit growth of 26%. Total assets reported an 11% year-on-year growth to close at KES 34 billion, with growth in the loan and deposit book at 27% and 12% respectively.
▪ The Group’s Joint Venture investment in Mauritius, Bank One, recorded a growth of 25% in operating income year on year, driven by the improvement in the balance sheet with total assets growing by 13%.
