I&M Holdings Balance Sheet Up To Ksh 258.09 Billion

I&M Holdings PLC recorded a 14 percent growth in its Balance Sheet size for its 2020 Full Year Financial Results, up from 315.2 billion shillings in 2019 to 358.09 billion shillings in 2020, bolstered largely by growth in customer deposits.

During the period under review, the Group, in line with its Brand Promise on placing its customers’ interests first, instituted a raft of measures aimed at cushioning them from the COVID-19 crisis.

Key among them was increased financing to businesses supporting COVID-19 mitigation measures, waiver of fees of select loans like Mortgages, and loan repayment holidays for its lending customers.

The Group’s lending book, therefore, recorded a growth of 7 percent compared to December 2019, to close at 187.3 billion shillings up from 175.3 billion shillings for a similar period last year.

The net Non-Performing Assets (NPAs) recorded a decline of 10 percent to 7.84 billion shillings. Net interest income recorded a marginal growth of 1 percent to 15.59 billion shillings up from 15.5 billion shillings in December 2019 attributed to an increased focus on growing quality interest-earning assets.

Additionally, the Group made a strategic effort to push uptake and usage of its alternate banking channels by giving concessions to encourage customers to utilize these channels for their banking transactions. As a result, the Group’s total Non-Interest Income recorded a marginal but steady growth year on year.

The Group’s after-tax profit however recorded a decline of 21% from Kshs 10.77 billion in 2019 to Kshs.8.41 billion in 2020.

Commenting on the financials, Daniel Ndonye, the I&M Holdings PLC Chairman noted that 2020 was one of the most challenging years that the Group had witnessed.

“We rose above the challenges by looking at new dimensions that would help sustain the Group’s business performance across the countries that we operate in. Key among them was to ramp-up efforts in our digital transformation journey and strategic expansion initiatives.”

The I&M Group last year announced the planned acquisition of Orient Bank, Uganda which is subject to receipt of regulatory approvals and expected to close in Q2-2021.

Additionally, in an effort to ensure that clients receive the right solutions based on their financial and lifestyle requirements, the Group made a strategic effort to optimize its operating model across its entities in key areas in decision making such as enhanced data analytics models. In addition, the Group continued to make investments in ICT infrastructure so as to support its innovation engine for market-driven solutions and to also improve operational efficiencies.

The Group’s regulatory ratios have also remained healthy despite the challenging environment. Its liquidity, from financials sets published, remained above 45% through the year, while the regulatory capital minimums held well above the set regulatory minimums and internally set thresholds.

The Group’s Board also proposed a dividend of Kshs 2.25 per share as well as a bonus issue of one (1) new fully paid-up bonus share of a par value Kshs 1.00 for every one (1) ordinary shares of par value Kshs 1 affirming its commitment to continue enhancing its shareholders’ value.

The entity’s subsidiaries also supported the overall performance contributing 6% of the overall profit before tax. Sarit Raja Shah, Group Executive Director, noted that the I&M Group will continue to take advantage of opportunities presented within the subsidiaries and other countries as and when they arise to boost the Group’s performance.

On its shared value agenda, the I&M Group, through its Foundation continued to support different vulnerable communities especially those impacted by the pandemic. The I&M Foundation set aside a Kshs. 50 million kitties to support vulnerable communities impacted by COVID-19 and also contributed a Kshs. 2,000,000 grant to the St. Anne’s Suresh Raja Shah school in Kairi, Kiambu County, to support online learning for its students. In addition, the Foundation donated Kshs. 1,000,000 to the Maa Trust to support Maa Beadwork social enterprise for over 500 Maasai women, living in Maasai Mara, in a bid to provide sustainable livelihoods.