I&M Group PLC have announced that they have posted a profit after tax of Ksh. 6.1 billion for the first half year ending 30 June 2024. This is up from Ksh. 5.03 billion in the same period last year, a growth of 21%.
The company attributed the 21% increase in net profit to growth in net interest income, fee income and a decline in loan loss provisions. The Bank also posted a 17% year-on-year increase in operating income, alongside a 12% rise in operating profit during the period under review.
I&M Group has also announced that it has recorded a 24% increase in profit before tax for the first half of 2024, which was Ksh. 8.7 billion up from Ksh. 7.0 billion in the same period last year.
Commenting on the results, Mr. Gul Khan I&M Bank CEO said, “We are pleased to record an impressive growth of 21% in Profit Before Tax in our first half of the year. Our focus on offering relevant financial solutions for Kenyans like free bank to M-PESA & Airtel Money transactions to individuals and Solo Biz owners (sole proprietors), strategic branch expansion and ecosystem partnerships has resulted in significant growth in our customer numbers and increase in deposit balances. We have also continued to invest heavily to provide the best digital customer experience with Digital Account Opening, Instant Short Term (30-Day) Unsecured Loan and the new Fikisha Goalz Savings products all available on our I&M Bank On The Go (OTG) App. 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. Our commitment to customer centricity was reaffirmed by our first position ranking in the 2024 Kenya Banking Consumer Sentiment on Social Media Index by Data EQ with a score of 72.2%.”
The Group’s operating expenses, exclusive of loan loss provisions, recorded an increase of 16% year on year to close at Ksh. 10.8 billion.
The Group’s balance sheet grew by 12% to close at Ksh. 564 billion while the loan portfolio grew by 5% during the period under review to stand at Ksh. 284 billion. Net non-performing loans reduced to Ksh. 15 billion from Ksh. 18.4 billion in the previous year while loan loss provisions went up to Ksh. 3.5 billion up from Ksh. 3.2 billion.
Customer deposits grew by 18% to stand at Ksh. 419 billion as compared to the same period in 2023.
Regional subsidiaries of the Group had operating income contribution increasing to 30% from 28% in 2023. For the period ending 30 June 2024, 83% of I&M Group customers across the region were digitally active.
I&M Rwanda reported a 37% increase in operating income and a strong 59% increase in net profit. In Tanzania, I&M recorded a 25% increase in operating income to close at Ksh. 1.8 billion and 50% increase in operating profit on the back of recoveries. The Ksh. equivalent Total Assets and Loans & Advances showed a decline of 3% and 6% respectively. (In TZS loans and advances grew by 12% year on year). Customer deposits were up by 2% in Ksh. (and 22% in local currency).
I&M Uganda posted growth in operating income of 22% and an operating profit growth of 54%. Total assets reported a 4% year-on-year growth to close at Ksh. 34 billion, with growth in the loan and deposit book at 3% and 7% respectively.
The Group’s Joint Venture investment in Mauritius, Bank One, recorded a growth of 23% in operating income year on year. Total Assets and net loans & advances declined by 1% and 5% (local currency up by 12% and 3%) respectively while customer deposits increased by 4% (18% in local currency).
I&M Group Regional CEO Mr. Kihara Maina noted, “Our strategic focus on innovation, customer-centric solutions and market expansion is driving tangible results, allowing us to better meet the diverse needs of our customers while fostering economic empowerment in the markets we operate in. This growth is about building a resilient and inclusive future, where our customers and the communities we serve, experience a positive impact