I&M Group PLC has increased its Profit Before tax by 24% to KES 8.7 billion in first half of 2024, up from KES 7.0 billion in the same period in 2023. The Tier 1 Bank reported strong operating revenues across all its markets, with regional businesses accounting for 26% of the Profit Before Tax.
Operating income was driven by significant growth in the corporate and retail segments, which saw increases of 49% and 34% respectively.
Key Financial Performance Highlights
Balance sheet highlights
• The Group’s balance sheet grew steadily, with total assets increasing by 12% over the same period in 2023 to close at KES 564 billion.
• The loan portfolio grew by 5% during the period under review to reach KES 284 billion in line with the group’s growth strategy for retail lending and growth in the subsidiary balance sheets.
• Customer deposits closed at KES 419 billion, an 18% increase year on year as the Group continued focusing on product innovation and digitization.
• The Net Non-Performing Loans stood at KES 15 billion from KES 18.4 billion in the prior year.
Income statement highlights
• The Group posted a Profit After Tax of KES 6.1billion up from KES 5.03 billion in the same period last year, a growth of 21%.
• Operating income recorded a growth of 19% for the period under review, driven by a 35% increase in Net Interest Income while the Group’s operating profitability increased by 21% year on year to KES 11.9 billion.
• Loan loss provisions closed at KES 3.5 billion up from KES 3.2 billion in the same period last year as the Group maintained prudence in asset quality management.
• The Group’s operating expenses, exclusive of loan loss provisions, recorded an increase of 16% year on year to close at KES 10.8 billion driven by continued investment in technology and people across all markets.
I&M Bank Kenya
• I&M Bank Kenya has reported a 21% increase in Profit Before Tax, driven by 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.
• The Bank achieved a remarkable 113% growth in new to bank customer numbers compared to the same period last year, with the small businesses (MSME) customer base more than doubling during this time. Additionally, I&M Bank has strengthened its leadership in Trade Finance, advancing from sixth place in 2020 to the second place in the first half of 2024.
• I&M Bank’s initiative to make banking more accessible through the ‘Ni Sare’ free bank to M-PESA and Airtel Money proposition has led to a 33% increase year on year in its total customer base. This growth positions I&M Bank as one of the fastest-growing banks by customer numbers in the region, with over 600,000 customers now being served.
• The bank, in collaboration with its ecosystem partners, has impacted over 2.3 million lives. Many of these are small businesses led by women and youth. This effort has been instrumental in bridging the financing gap for these groups.
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%.”
Regional Growth
- Regional subsidiaries of the Group continued to grow steadily, with 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 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 17% and 34% respectively, which led to growth in Net Interest Income and Non-Funded Income.
- In Tanzania, I&M recorded a 25% increase in operating income to close at KES 1.8 billion and 50% increase in operating profit on the back of recoveries, a testament to focused approach to managing asset quality. The KES 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 KES (and 22% in local currency).
- I&M Uganda posted strong 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 KES 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