I&M Group PLC Delivers 23% Growth In Operating Income To Ksh 19 Billion

I&M Group PLC increased its operating income by 23% to KES 19.1 billion in the first half of 2023, up from KES 15.6 billion in the same period in 2022.

The operating income was boosted by growth in both corporate and retail segments (29% and 28% year-on-year growth respectively) as it saw its diversification strategy yield fruit. 

The Tier 1 Bank recorded strong operating revenues across its markets, with regional businesses contributing 27% to its revenue. 

The Group continues to successfully execute its iMara 2.0 strategy, which is now in its 3rd and final year, focusing on business growth, operational efficiencies, customer centricity, and digital transformation. 

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Balance sheet highlights

The Group’s balance sheet grew steadily, with total assets crossing the KES 500 Billion mark increasing by 17% over the same period in 2022. 

The loan portfolio grew by 17% to reach KES 270 billion partly attributable to retail lending through the Group’s digital platforms despite the challenging macro-economic conditions across most of its markets. 

Customer deposits closed at KES 357 billion, a 14% increase year on year, during the period as the Group continued focusing on product innovation and digitization. 

The Net Non-Performing Loans stood at KES 10 billion, a reflection of the challenging macroeconomic environment.                                                                             

Income statement highlights

The Group’s operating income recorded a strong growth of 23%. The overall profit declined marginally by 2% to KES 7.0 billion because of an increase in loan loss provisions, as the Group maintained prudence. 

Growth in operating income was driven by a growth of 16% in Net Interest Income and 37% in Non-Interest Income for the period under review. 

The Group’s operating expenses, exclusive of loan loss provisions, stood at KES 9.3 billion, an increase of 28% year on year driven by continued investment in technology and people across all jurisdictions. 

Commenting on the results, Mr. Sarit Raja-Shah, Group Executive Director, I&M Group PLC, noted: “The Group has ensured adequate funding and sufficient capital buffers to uphold the present growth momentum as we continue to meaningfully impact customers. The rise in the Non-Performing loan book and provisions reflects our cautious approach to portfolio management amid a challenging business environment. As we move ahead, the Group’s emphasis remains on expanding our portfolio and enabling our customers to achieve their business goals. 

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I&M Bank Kenya

I&M Bank Kenya posted an operating income growth of 20% year on year, a 17% increase in operating profit, and a 6% decline in profit before tax, due to higher loan loss provisions. 

The successful implementation of the iMara 2.0 strategy resulted in growth in deposits, primarily Current and Savings Accounts, Customer assets, and New-to-Bank relationships. Additionally, through relevant product innovation and marketing, the Bank has registered significant growth in brand awareness from 5% to 20% during the first half of the year. 

As part of the strategy, the Bank has also seen a significan