I&M Group Profits Before Tax Up 25% To Close At Ksh 20.8 Billion

I&M Group PLC has recorded a Profit Before Tax of KES 20.8 billion for the period ending 31 December 2024, representing 25% growth driven by increased operating income and strategic focus on MSME lending and digital transformation.

The regional financial services provider with operations in Kenya, Mauritius, Rwanda, Tanzania, and Uganda continued to strengthen its market position through its iMara strategy.

This strategy has significantly expanded the Group’s MSME portfolio, with MSME customers growing sixfold since 2023 and the related balance sheet more than doubling. Additionally, through its direct efforts and ecosystem partnerships, I&M Group has impacted over 6.3 million lives.

Key Financial Performance Highlights Balance Sheet Growth:

The Group’s total assets grew by 3% to KES 581 billion.

The MSME loan book more than doubled, reinforcing the Group’s commitment to catalysing economic growth and job creation amidst macroeconomic challenges.

Customer deposits stood at KES 412 billion with strong growth in CASA (Current Accounts and Savings Accounts).

Group synergies contributed to a 57% increase in cross-border revenue year-on-year, with total income rising by 20% to KES 51 billion. Net Interest Income grew by 31%. Fees and commission income increased by 16% year-on-year from KES 6.9 billion to KES 7.9 billion, although the overall non-interest income was reduced marginally by 3% year-on-year.

The Group’s operating expenses, exclusive of loan loss provisions, rose by 16% year-on-year to close at KES 23 billion on account of branch expansion and increased investment in staff and technology.

Commenting on the results, Mr. Kihara Maina, I&M Group PLC Regional CEO, stated: “Our focus on delivering the iMara Strategy has led to remarkable gains in MSME growth, digital banking, and customer expansion. We remain committed to driving financial inclusion and building an ecosystem that supports our customers’ businesses sustainably. We also reengineered the Strategy to focus on sustainability, which led to the adoption of a group-wide sustainability action plan.

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I&M Bank Kenya remains the Group’s key business, contributing 71% of overall profit before tax. The Bank posted a 16% year-on-year growth in revenue and a 17% increase in Profit Before Tax.

The lender’s customer base doubled in two years, 50% of whom were onboarded digitally, reinforcing the Bank’s commitment to a tech-driven model and increasing digital transactions by 132%.

The Bank embarked on an ambitious branch expansion plan, with 21 new outlets opened in the past two years. Additionally, through relevant product innovation and brand building, brand awareness grew from 20% to 34%.

The Bank has also seen a significant growth in the adoption of its digital services, with 95% of customers being digitally active.

I&M Bank Kenya’s CEO, Mr. Gul Khan, remarked, “Our strategy of delivering digital products and services that are relevant for customers has yielded strong growth. Our customer base has doubled in 2 years. Key innovations such as Ni Sare Kabisa free transfers to M-PESA and Airtel Money for individuals and small businesses, digital short-term loans, goal-based savings, and the largest unsecured personal loan of up to KES 10 million have driven customer adoption. We have continued to invest heavily in our App and Online Banking to enhance customer experience. These efforts resulted in I&M Bank being recognized as the top bank in Kenya for consumer sentiment on social media by DataEQ.”

I&M Group’s regional subsidiaries contributed 29% to overall profitability compared to 24% in the prior year. Non-branch transactions accounted for 81% of all transactions with 78% of customers across the region being digitally active.

I&M Bank Rwanda: Reported a 57% increase in Profit Before Tax, driven by increased economic activity and strong income growth driven by customer acquisition and balance sheet growth.

I&M Bank Tanzania: Recorded a Profit Before Tax of KES 1.06 billion, up from KES 309 million in 2023, supported by asset growth and recoveries.

I&M Bank Uganda: Achieved a 78% increase in Profit Before Tax, with total assets growing by 21% in local currency to cross the UGX 1 trillion mark.

Bank One (Mauritius): Operating income for the joint venture with Ciel Group grew by 5%, reflecting prudent balance sheet growth; however, Profit Before Tax declined by 27% due to increased loan loss provisions.

I&M Group Chairman, Mr. Oliver Fowler, stated: “Following this strong performance, the Board of Directors has proposed a KES 1.70 final dividend, which, together with the interim dividend of KES 1.30 per share, totals KES 3.00 per share – a 17% increase from KES 2.55 per share in the prior year.”

I&M Group remains committed to fostering sustainable financial inclusion through strategic investments in MSMEs, digital banking, and customer-centric solutions. The Group continues to expand its footprint, ensuring that banking services remain relevant and accessible across its markets.

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