I&M Group PLC has announced that it has recorded a net profit of Ksh. 12.6 billion for the year ended 31st December 2023. The lender attributed the 12.7% growth in its profits to an increase in its operating income.
Operating income grew by 20% from Ksh. 36 billion in the previous year to Ksh. 43 billion with 20% of this revenue coming from new strategic initiatives. Growth in Operating Income was driven by a 25% increase in Net Interest Income on the back of rising interest rates and a 10% growth in Non-Interest Income for the period under review. The Non-Interest income growth is attributed to growth in income from banking transactions and foreign exchange trading.
The Group’s operating expenses, exclusive of loan loss provisions, rose by 26% year-on-year to close at Ksh. 20 billion. This is on account of branch expansion, inflationary pressures and as a result of increased investment in staff and technology.
The Group’s balance sheet grew with Total Assets increasing by Ksh. 142 billion to Ksh. 580 billion as compared to the previous period. The loan portfolio grew by 30% to Ksh. 311 billion partly attributed to the extension of retail lending through the Bank’s digital platforms. Net non performing loan ratio stod at 5% as of 31st December 2023.
Customer deposits closed at Ksh. 417 billion, recording a 33% increase year on-year, largely attributed to growth in CASA (Current Accounts and Savings Accounts).
Commenting on the results, Mr. Kihara Maina, I&M Group PLC, Regional CEO noted: “Building upon the success of our recently concluded iMara 2.0 strategy, we have witnessed remarkable achievements in both profitability and growth in our various business units. As we venture into the next chapter with our iMara 3.0 strategy, our primary aim is to sustain the growth through continued focus on enhancing our digital solutions platforms and building an ecosystem to support our customers’ businesses, as we seek to become Eastern Africa’s Leading Financial Partner for Growth.”
I&M Bank Kenya
Commenting on I&M Bank Kenya’s performance, I&M Bank’s CEO Mr. Gul Khan said: “Throughout the year, our primary focus was on delivering new and relevant financial solutions designed to solve problems for Kenyans which resulted in a 27% increase in our total customers and over 100% increase in digital transactions. We saw significant growth driven by innovative solutions such as the ongoing Ni Sare Kabisa free transfers to M-PESA and Airtel Money and the largest unsecured personal loan of up to KES 10 million. Our commitment to customer-centricity remains firm, as evidenced by our countrywide branch expansion which has seen us open 8 branches, with plans to open 12 more, to be closer to our customers. Furthermore, we will continue to launch new and relevant solutions for our customers as we celebrate 50 years of I&M Bank in Kenya.”
Regional growth
The Group’s regional subsidiaries continued to show steady growth, contributing 24% to the Group’s overall profitability. For the period ending 31st December 2023, 78% of I&M Group customers across the region were digitally active. Non-branch transactions also increased to 81%.
I&M Bank in Rwanda reported a 24% 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 48% and 39% respectively, which led to growth in Net Interest Income and Non-Funded Income.
In Tanzania, the Bank recorded a Profit Before Tax of Ksh. 309 million up from a loss of Ksh. 689 million in 2022. This is on the back of strong growth in total assets of 47%, with loans and deposits growing by 45% and 55% respectively.
I&M Bank Uganda posted strong growth in operating income of 41%. Total assets reported a 44% year on year growth to close at Ksh. 38 billion, with growth in the loans and deposits book at 53% and 38% respectively.
The Group’s joint venture investment in Mauritius, Bank One, recorded a growth of 80% in Profit Before Tax year on year, driven by the growth of the loan portfolio as well as higher non-interest income.
The Board of Directors have proposed a dividend per share of Ksh. 2.55 per share which amounts to Ksh. 4.22 billion.