I&M Group PLC has reported a substantial 24 percent increase in Profit Before Tax (PBT) for the first half of 2024, reaching KES 8.7 billion compared to KES 7.0 billion in the same period of 2023. This growth reflects robust performance across all its markets, with regional businesses contributing 26 percent to the PBT.
The Group’s operating income saw significant boosts, driven by a 49 percent increase in corporate segment revenues and a 34 percent rise in retail segment revenues.
The Group’s total assets grew by 12 percent year-on-year, totaling KES 564 billion. The loan portfolio expanded by 5 percent, reaching KES 284 billion, aligning with the Group’s strategy for retail lending and growth in subsidiary balance sheets. Customer deposits surged by 18 percent to KES 419 billion, reflecting a focus on product innovation and digitalization. Net Non-Performing Loans decreased to KES 15 billion from KES 18.4 billion the previous year.
I&M Group posted a Profit After Tax (PAT) of KES 6.1 billion, up 21 percent from KES 5.03 billion last year. Operating income grew by 19 percent driven by a 35 percent increase in Net Interest Income. The Group’s operating profitability also rose by 21 percent year-on-year to KES 11.9 billion. Loan loss provisions increased to KES 3.5 billion from KES 3.2 billion, reflecting prudent asset quality management. Operating expenses, excluding loan loss provisions, rose 16 percent to KES 10.8 billion due to ongoing investments in technology and human resources.
I&M Bank Kenya experienced a 21 percent increase in Profit Before Tax, fueled by higher Net Interest Income, Fee Income, and reduced loan loss provisions. Operating income grew by 17 percent year-on-year, with a 12 percent rise in operating profit. The bank achieved a remarkable 113 percent growth in new customer numbers and more than doubled its small business (MSME) customer base. Additionally, I&M Bank advanced in Trade Finance, moving from sixth place in 2020 to second place in the first half of 2024.
The introduction of the ‘Ni Sare’ free bank-to-M-PESA and Airtel Money proposition led to a 33 percent year-on-year increase in the customer base, making I&M Bank one of the fastest-growing banks by customer numbers in the region, now serving over 600,000 customers. The bank, in partnership with ecosystem stakeholders, has positively impacted over 2.3 million lives, particularly small businesses led by women and youth.
Mr. Gul Khan, CEO of I&M Bank, expressed satisfaction with the 21 percent growth in Profit Before Tax, attributing the success to relevant financial solutions, strategic branch expansion, and ecosystem partnerships. The bank’s commitment to digital transformation was highlighted by the introduction of features such as Digital Account Opening and Instant Short Term Unsecured Loans on the I&M Bank On The Go (OTG) App. Celebrating its 50th anniversary, I&M Bank was also ranked first in the 2024 Kenya Banking Consumer Sentiment on Social Media Index by Data EQ with a score of 72.2 percent .
Regional subsidiaries showed steady growth, with their contribution to operating income increasing to 30 percent from 28 percent in 2023. As of June 30, 2024, 83 percent of I&M Group’s regional customers were digitally active.
I&M Rwanda reported a 37 percent increase in operating income and a 59 percent rise in Profit Before Tax, driven by economic activity in the region. Loans and deposits grew by 17 percent and 34 percent, respectively.
I&M Tanzania saw a 25 percent increase in operating income to KES 1.8 billion and a 50 percent rise in operating profit, attributed to effective asset quality management. However, total assets and loans showed a decline of 3 percent and 6 percent respectively in KES terms, though customer deposits rose by 2 percent in KES and 22 percent in local currency.
I&M Uganda reported a 22 percent increase in operating income and a 54 percent growth in operating profit. Total assets grew by 4 percent year-on-year to KES 34 billion, with loans and deposits increasing by 3 percent and 7 percent, respectively.
Bank One, I&M Group’s joint venture in Mauritius, achieved a 23 percent increase in operating income year-on-year. However, total assets and net loans and advances decreased by 1 percent and 5 percent respectively, though customer deposits grew by 4 percent (18 percent in local currency).
Mr. Kihara Maina, Regional CEO of I&M Group, attributed the growth to strategic innovation, customer-centric solutions, and market expansion. He emphasized the Group’s commitment to building a resilient and inclusive future that positively impacts customers and communities.