I&M Group PLC has reported a strong financial performance for the first half of 2024, showcasing a 24% increase in Profit Before Tax (PBT), which now stands at KShs. 8.7 billion. This marks a significant rise from KShs. 7.0 billion during the same period in 2023, underscoring the Group’s strategic resilience and effective management across its regional markets.
Impressive Growth in Profitability and Revenue Streams
I&M Group’s Profit After Tax (PAT) also saw a substantial rise, reaching KShs. 6.1 billion, a 21% increase from the previous year’s KShs. 5.03 billion. The growth in operating income, which expanded by 19%, played a key role in boosting profitability. This surge was driven by a 35% increase in Net Interest Income, highlighting the Group’s effective strategies in both corporate and retail segments.
Operating profitability for the period also increased by 21% year-on-year, reaching KShs. 11.9 billion, indicating a strong operational performance across the board.
Robust Balance Sheet Expansion
I&M Group’s balance sheet continues to strengthen, with total assets growing by 12% year-on-year to close at KShs. 564 billion. The Group’s loan portfolio grew by 5%, aligning with its strategy to boost retail lending and expand its subsidiary balance sheets. Customer deposits, a crucial indicator of financial stability and customer confidence, increased by an impressive 18% year-on-year to KShs. 419 billion, driven by the Group’s ongoing focus on product innovation and digitization.
Asset Quality and Prudence in Management
The Group maintained prudence in asset quality management, with Net Non-Performing Loans (NPLs) standing at KShs. 15 billion, down from KShs. 18.4 billion the previous year. This decline reflects the Group’s successful efforts in managing credit risk and enhancing asset quality. However, loan loss provisions increased to KShs. 3.5 billion, up from KShs. 3.2 billion, highlighting the Group’s cautious approach in navigating potential risks.
I&M Bank Kenya: Leading the Charge in Growth and Innovation
I&M Bank Kenya, the flagship entity of the Group, reported a 21% increase in PBT, driven by robust growth in Net Interest Income, Fee Income, and a reduction in loan loss provisions. The bank’s operating income grew by 17%, while its operating profit increased by 12% year-on-year, showcasing strong financial health and operational efficiency.
The bank also recorded a remarkable 113% growth in new-to-bank customer numbers, with a particular surge in the MSME segment. This growth was bolstered by strategic initiatives like the ‘Ni Sare’ free bank-to-M-PESA and Airtel Money proposition, which contributed to a 33% increase in the total customer base. With over 600,000 customers, I&M Bank is now one of the fastest-growing banks in the region by customer numbers.
Regional Expansion: A Key Driver of Success
I&M Group’s regional subsidiaries continue to show robust growth, contributing significantly to the Group’s overall performance. The regional businesses accounted for 26% of the Group’s PBT and 30% of operating income, up from 28% in the previous year.
- Rwanda: I&M Rwanda reported a 37% increase in operating income and an impressive 59% rise in PBT, driven by heightened economic activity and growth in both loans and deposits.
- Tanzania: The Tanzanian subsidiary saw a 25% increase in operating income and a 50% surge in operating profit, reflecting a focused approach to managing asset quality.
- Uganda: I&M Uganda posted strong growth, with operating income up by 22% and operating profit growing by 54%. Total assets grew by 4%, supported by a 3% rise in the loan book and a 7% increase in deposits.
- Mauritius (Bank One Joint Venture): The Group’s joint venture in Mauritius also recorded positive results, with a 23% increase in operating income year-on-year.
Commitment to Innovation and Customer-Centric Solutions
Throughout the first half of 2024, I&M Group has remained committed to enhancing customer experiences through continuous innovation. The introduction of digital solutions like the I&M Bank On The Go (OTG) App, which offers features such as Digital Account Opening, Instant Short-Term Unsecured Loans, and the Fikisha Goalz Savings products, underscores the Group’s dedication to providing top-notch financial services.
As I&M Group celebrates its 50th anniversary, the bank’s leadership reaffirmed its commitment to customer-centricity, which has been a key factor in its continued success. This commitment was recognized by the bank’s top ranking in the 2024 Kenya Banking Consumer Sentiment on Social Media Index by Data EQ, with a score of 72.2%.
Conclusion
I&M Group’s strong financial performance in the first half of 2024 reflects its strategic focus on regional expansion, innovation, and customer-centric solutions. As the Group continues to grow and diversify its operations, it remains well-positioned to drive economic empowerment and create lasting value for its customers and stakeholders across the region.
