I&M Group PLC has reported a 24% year-on-year growth in Profit Before Tax (PBT) for the third quarter of 2024, reaching KES 14.1 billion, compared to KES 11.4 billion in the same period of 2023. This exceptional performance underscores the success of the Group’s iMara 3.0 strategy, its customer-centric approach, and continued investments in innovation and operational efficiency.
The financial results, announced as the Group celebrates its 50th anniversary, highlight its commitment to sustainable growth and market leadership across the region.
Key Financial Highlights
Income Statement Performance
- Profit Before Tax (PBT): Increased by 24% to KES 14.1 billion.
- Operating Revenue: Grew by 20%, while operating profit rose by 24% to KES 18.9 billion.
- Net Interest Income: Surged by 37%, driven by robust performance in both retail and corporate banking segments.
- Loan Loss Provisions: Increased to KES 5.5 billion from KES 4.6 billion, reflecting a prudent approach to asset quality management.
- Operating Expenses: Excluding loan loss provisions, rose by 16%, primarily due to investments in technology, talent, and branch network expansion in Kenya and Rwanda.
Balance Sheet Performance
- Total Assets: Grew by 4% to KES 568 billion.
- Customer Deposits: Increased by 3% to KES 414 billion, bolstered by innovative product offerings and digitization efforts.
- Loan Portfolio: Declined by 2% to KES 281 billion, though retail lending showed significant growth.
- Net Non-Performing Loans (NPLs): Stood at KES 14 billion, reflecting macroeconomic pressures.
Regional subsidiaries contributed 28% of the Group’s PBT, showcasing strong performance across markets despite challenges posed by currency fluctuations.
Driving Growth Through Strategic Focus
Commenting on the results, Mr. Kihara Maina, Regional CEO of I&M Group PLC, attributed the Group’s success to the strategic implementation of the iMara 3.0 framework:
“The 24% increase in profitability marks a strong start to our iMara 3.0 strategy. As we celebrate I&M Bank’s 50th anniversary, we remain committed to customer-centricity, operational efficiency, and digital transformation to sustain profitability in the coming years.”
Based on the strong performance, the Group announced an interim dividend of KES 1.30 per share, payable in January 2025.
Kenya’s Leading Role in Regional Success
I&M Bank Kenya, the Group’s flagship subsidiary, recorded a 21% increase in PBT for Q3 2024, driven by:
- A 19% year-on-year revenue growth.
- A 17% increase in operating profit.
- A 36% growth in customer base, attributed to the innovative Ni Sare free banking initiative that integrates seamlessly with mobile money platforms like M-PESA and Airtel Money.
- A 270% increase in SME customer acquisition through the extension of the Ni Sare Kabisa proposition to small businesses (Solo Biz) launched in April 2024.
These initiatives have positioned I&M Bank Kenya as one of the fastest-growing banks by customer numbers in the region, now serving over 600,000 customers.
Regional Subsidiary Performance
The Group’s subsidiaries across Rwanda, Tanzania, Uganda, and Mauritius reported robust growth in operating income and profitability, despite currency translation effects:
I&M Bank Rwanda
- Operating Income: Increased by 32%.
- Profit Before Tax: Grew by 55%.
- Loans and Deposits: Grew by 27% and 52% in local currency, respectively.
I&M Bank Tanzania
- Operating Income: Increased by 34% to KES 3.0 billion.
- Operating Profit: Surged by 73%, driven by asset quality management and recoveries.
- Local currency loans and deposits grew by 11% and 19%, respectively.
I&M Bank Uganda
- Operating Income: Grew by 21%, with a 37% rise in operating profit.
- Loan Portfolio: Expanded by 24%, while deposits grew by 7%.
Bank One, Mauritius
- Operating Income: Increased by 16%, with local currency growth noted in loans and deposits despite declines in KES terms.
Customer-Centric Innovation as a Growth Driver
The Group’s investments in digital transformation continue to pay dividends, with 83% of customers now digitally active across the region. Initiatives like the Ni Sare platform and SME-focused products have not only enhanced customer experience but also strengthened the Group’s market positioning.
I&M Bank Kenya CEO, Mr. Gul Khan, emphasized the importance of customer-centric solutions:
“Our growth has been achieved while maintaining a strong focus on customer centricity, as reflected in our consistent Net Promoter Score (NPS) of over 70% throughout the year. As we celebrate our 50th anniversary, I extend my heartfelt gratitude to our customers and staff for their trust and commitment.”
The Bank also achieved a 14% increase in Brand Awareness, making it the fastest-growing bank in Kenya in terms of brand relevance.
Impact on SMEs and Local Communities
I&M Bank has disbursed over KES 20 billion ($160 million) in loans, positively impacting 2.5 million lives across the region. By bridging the financing gap for SMEs and MSMEs, the Group has solidified its role as a key enabler of economic growth.
Future Outlook: Sustaining Momentum
As I&M Group looks ahead, its strategic priorities include:
- Expanding Digital Accessibility: Leveraging advanced technologies to enhance customer experience and operational efficiency.
- Strengthening Regional Presence: Deepening market penetration across East Africa while expanding product offerings.
- Enhancing Sustainability Efforts: Adopting green financing initiatives and supporting environmentally sustainable projects.
- Driving Financial Inclusion: Continuing to provide last-mile banking solutions for underserved segments.
The Group’s focus on innovation, operational efficiency, and customer-centricity positions it for continued success in a dynamic and competitive financial landscape.
