I&M Group PLC has announced that its profit before tax for Q1 of 2024 has increased by 35% to Ksh. 3.6 billion up from Ksh. 2.7 billion in the same period in 2023.

The 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. Operating income recorded a growth of 21% while the Group’s operating profitability increased by 24% year on year to Ksh. 6.4 billion.

The bank’s operating expenses, exclusive of loan loss provisions recorded an increase of 16% year on year to close at Ksh. 5.1 billion.

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”.

The Group’s balance sheet grew with total assets increasing by 13% over the same period in 2023 to close at Ksh. 533 billion.

The loan portfolio grew by 13% to reach Ksh. 291 billion partly attributable to retail lending and growth in the subsidiary balance sheets. The net non-performing Loans stood at Ksh. 14 billion, a reflection of the challenging macro-economic environment. Loan loss provisions closed at Ksh. 1.5 billion down from Ksh. 1.6 billion in the same period last year.

Customer deposits closed at Ksh. 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.

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”.