I&M Holdings Ltd, the holding company of the I&M Bank Group, has announced 2014 financial results reflecting a growth of 13% in profit before tax in the face of a challenging year in terms of maintenance of the quality of the lending book and substantial investment in new branches and technology.
I&M Holdings’ total assets registered a 25% growth to Kshs. 176.5 billion and profit before tax increased to Kshs 8.2 billion in 2014 from Kshs. 7.3 billion in 2013. Customer loans and advances increased by 22% to reach Kshs 112.5 billion while customer deposits increased by 18% to Kshs 114.2 billion.
I&M Bank Ltd, the Kenyan operations of the Group, has also announced a profit before tax of Kshs 7.7 billion reflecting a 28% growth over 2014, aided by a one-time gain on disposal of properties of Kshs 694 million to a Group company. Total assets grew by 24% to Kshs 137.3 billion as customer loans increased by 22% and customer deposits increased by 16%. In line with the 2014 trend across the banking industry, non-performing loans increased to Kshs 1.9 billion, although the ratio of non-performing loans/total loans remained at one of the lowest in the industry at 2.12%.
Announcing the results, the Executive Director, Mr Sarit S Raja Shah said ‘’in 2014 we embarked on an aggressive branch expansion strategy which took our network size to 30 branches. This strategy will continue in 2015. We also made significant additions to our product suite, particularly in the alternate channels of mobile banking and internet banking. We will continue to innovate in these channels”. Mr Arun S Mathur, the Bank’s CEO, also added, ‘’ The Bank made a very promising debut into social media in 2014 and this has emerged as a key channel for addressing customer service issues and as well communicating our products and services efficiently. This will be one of our main focus in 2015 as we plan to expand our social media presence in more channels.”
The past year saw I&M Bank make significant forays into new lines of business viz. Bancassurance and Agency Banking. The Bank has recently announced a partnership with Mobicash to offer agency banking services across selected countrywide outlets of Mobicash. The Bank also launched Cash Management Services to ease transportation of cash to and from customer locations. The I&M Mobile Banking App was introduced during the year, providing a new mobile banking experience to customers. Apart from opening 9 new branches, the Bank also expanded its off-site ATM network with 6 new locations.