I&M Group PLC has announced that it has reported a 16% growth in net profit in the first half of 2022 which stands at Ksh. 4.9 billion. This is an improvement compared to the Ksh. 4.2 billion the company reported in the same period in 2021.

The Group’s total assets grew by 15% to Ksh. 440 billion, up from Ksh. 382 billion in June 2021.
The loan portfolio increased by 13% to Kes 231 billion, while investments in government securities were up by 17%.

The net non-performing loans stood at 2.3%, decreasing by 31% year on year on the back of increases in the loan book and recoveries. Customer deposits were Ksh. 313 billion, a 13% increase year on year.

Net interest income for the period recorded a growth of 19% to stand at Ksh. 10.5 billion, an increase from Kes. 8.9 billion in June 2021. The growth was driven by a 44% increase in fees and commissions and a jump in foreign exchange trading income to Ksh. 1.9 billion from Ksh. 770 million.

Commenting on the results, Mr. Daniel Ndonye, Chairman, I&M Group PLC, noted: “This performance reflects positive underlying trends across the entire business resulting from gains made in implementing our iMara 2.0 strategy.” Ndonye added, “Our key focus going forward is to accelerate the digital transformation journey through rolling out more innovative solutions and embedding digital channels to ensure that we deliver the value add financial solutions for our customers’.

During the period, I&M Group significantly increased its digital services, with 85% of its customers now initiating transactions through digital channels. They rolled out new digital solutions aligned to its business growth strategy. In Kenya, I&M Bank launched its unsecured automated lending solution targeting small businesses and Retail clients through its state of the art mobile and internet banking platform, I&M On-The-Go (OTG). This solution enables a customer to conveniently apply for a loan from an amount of Ksh. 50,000 up to a maximum of Ksh. 3 million for a period of 4 years. In Tanzania, the partnership launch with Airtel of its mobile lending solution, Kamalisha, is showing good early uptake.

The Kenyan subsidiary has invested in financial support programmes geared towards financing small businesses (MSMEs) through partnering with IFC and FMO to provide access to financing for working capital, expansion, and to weather the effects of COVID-19. The move is part of the Group’s strategy to diversify its revenue streams for business growth through deeper penetration in the MSME space.

Also, I&M Bank, Kenya launched an enhanced set of financial solutions tailor-made to support the Bank’s strategy of growing its Retail and MSME segments. These include simplified transactional accounts such as the Pay-Go and Club Accounts, targeting the Young Professionals and High Networth Individuals, and the Business Premier Account and Business Account, catering for the Corporate and Business clients. Also the offerings come with a set of world-class debit cards extended in partnership with Mastercard.

In Rwanda, I&M Bank via its partnership with SPENN launched a loan product for micro borrowers, allowing its clients to borrow up to Rwf 500,000, (Ksh. 58,000), supporting deeper financial inclusion among Rwandans.

To support its Regional customers, the Group launched a single transactional account and real-time payments platform known as I&M BRISK, which allows I&M Bank customers to access real-time withdrawals, deposits and funds transfers at any I&M Bank branch in Kenya, Rwanda, and Tanzania using their existing account.

The Group’s Flagship subsidiary, I&M Bank, Kenya recorded a profit after tax of Ksh. 3.8 billion, compared to Ksh. 3 billion in June 2021 reflecting a 27% year on year growth. The performance was driven by growth in net interest income and non-funded income by 11% and 20% respectively and a reduction in loan loss provisions. Total assets grew by 13% to close at Ksh. 319 billion driven by a 12% growth in the loan book.

I&M Bank Rwanda reported a 29% increase in profit after tax for the half year to June 2022. The Bank’s strong performance was driven by increased economic activity, with loans and deposits growing by 21% and 27% respectively, which in turn led to strong growth in net interest income and net fee income. The Rwandan subsidiary continues its focus on enhancing digital services adoption – 75% of its customers now initiate transactions through digital channels.

In Tanzania I&M recorded a drop in profit after tax to Tsh 2.4 billion, (Ksh. 117 Million) compared to Tsh. 2.5 billion (Ksh. 116.9 million) in June 2021. This was due to an increase of 14% in operating expenses due to investment in technology and additional impairment provisions of Tsh 1.4 billion (Ksh. 70 million). The balance sheet grew by 9% to close at Tsh. 613 billion (Ksh. 31 billion).

I&M Bank Uganda reported its first year-on-year results as a member of the Group, posting a profit after tax of Ugx. 776 million (Ksh. 25 million). This reflects an increase in operating income to Ugx 26 billion, (Ksh. 831 million), reduced loan loss provisions and increased recoveries. The balance sheet reported a 4% year on year growth to close at Ugx 809 billion, (Ksh. 25 billion). I&M Group also completed the acquisition of a 90 percent stake in Uganda’s Orient Bank Limited on 30 April 2021.

The Group’s joint venture, Bank One in Mauritius, recorded a profit after tax of Mur 160 million (Ksh. 411 million) for the 6 months to June 2022 compared to Mur 198 million (Ksh. 536 million) for the same period last year. The half year results for 2021 included one off exceptional gains of Mur 78 million (Ksh. 29 million) on sale of financial assets.