I&M Group’s Profit After Tax Grows By 15% For 2023

I&M Group PLC has recorded a Profit After Tax of KES 13.3 billion for the year ended 31st December 2023.

The regional financial services provider with operations in Kenya, Rwanda, Tanzania, Uganda, and Mauritius, attributed the 15% profit growth to an increase in operating income.

In the context of the Group’s strategic focus, the 2023 performance is a clear affirmation that the iMara2.0 strategy, which ended in 2023 after a three-year period, has delivered remarkable year-on-year results. The focus on delivering the iMara2.0 strategy over the past three years has seen Return on Equity grow from 10% in 2020 to 15% in 2023. Operating income grew by 20% from KES 36 billion in the previous year to KES 43 billion with 20% of this revenue coming from new strategic initiatives during this phase.

During the period under review, the Group’s balance sheet and income metrics improved with the liquidity and capital ratios remaining strong.

2023 Balance sheet highlights

The Group’s balance sheet grew steadily with Total Assets increasing by KES 142 billion to KES 580 billion.

The loan portfolio grew by 30% to KES 311 billion partly attributed to the extension of retail lending through the Bank’s digital platforms with a net non-performing loan ratio of 5% as of 31st December 2023.

Customer deposits closed at KES 417 billion, recording a 33% increase year-on-year, largely attributed to growth in CASA (Current Accounts and Savings Accounts).

Income statement highlights

Growth in Operating Income was driven by a 25% increase in Net Interest Income on the back of rising interest rates and a 10% growth in Non-Interest Income for the period under review. The Non-Interest income growth is attributed to growth in income from banking transactions and foreign exchange trading.

The Group’s operating expenses, exclusive of loan loss provisions rose by 26% year-on-year to close at KES 20 billion on account of branch expansion, inflationary pressures, and as a result of increased investment in staff and

The Group’s share of profit from its joint venture in Mauritius, Bank One Limited recorded a year-on-year growth of 82% to close at KES 1.2 billion.

Commenting on the results, Mr. Kihara Maina, I&M Group PLC, Regional CEO noted: “Building upon the success of our recently concluded iMara 2.0 strategy, we have witnessed remarkable achievements in both profitability and growth in our various business units.”

I&M Bank Kenya

I&M Bank Kenya posted an operating income growth of 14% year on year, a 7% increase in operating profit, and a 1% drop in Profit Before Tax, due to higher loan loss provisions.

In the prior year, the successful implementation of our strategy resulted in significant growth in new customers, deposits, primarily Current and Savings Accounts (CASA), and customer loans. Additionally, through relevant product innovation and brand building, brand awareness grew from 5% to 20%.

As part of the strategy, the Bank has also seen significant growth in adopting its digital services, with 93% of customers being digitally active.

Commenting on I&M Bank Kenya’s performance, I&M Bank’s CEO Mr. Gul Khan said: “Throughout the year, our primary focus was on delivering new and relevant financial solutions designed to solve problems for Kenyans which resulted in a 27% increase in our total customers and over 100% increase in digital transactions. We saw significant growth driven by innovative solutions such as the ongoing Ni Sare Kabisa free transfers to M-PESA and Airtel Money and the largest unsecured personal loan

of up to KES 10 million. Our commitment to customer-centricity remains firm, as evidenced by our countrywide branch expansion which has seen us open 8 branches, with plans to open 12 more, to be closer to our customers. Furthermore, we will continue to launch new and relevant solutions for our customers as we celebrate 50 years of I&M Bank in Kenya.”

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