- I&M Group net interest income grew significantly by 37% year-on-year.
- I&M Rwanda reported a 55% rise in Profit Before Tax, while Tanzania achieved a 73% growth in operating profit.
- I&M Bank Kenya’s customer base expanded by 36%, reaching over 600,000, driven by initiatives like Ni Sare.
- An interim dividend of KES 1.30 per share was declared, payable in January 2025.
I&M Group PLC has reported a 24% increase in Profit Before Tax for the third quarter of 2024, climbing to Ksh 14.1 billion from Ksh 11.4 billion in the same period last year.
Operating revenue rose by 20%, driving an equivalent 24% rise in operating profit to KES 18.9 billion. This growth was further boosted by a 37% increase in Net Interest Income.
Despite a challenging macroeconomic environment, the Group maintained its emphasis on asset quality, with loan loss provisions increasing to KES 5.5 billion from KES 4.6 billion in 2023. Investments in technology, talent acquisition, and branch expansion in Kenya and Rwanda contributed to a 16% rise in operating expenses, excluding loan loss provisions, positioning the Group for long-term growth.
On the balance sheet, total assets grew by 4% year-on-year to KES 568 billion, supported by a 3% increase in customer deposits to KES 414 billion. Although the overall loan portfolio declined by 2% to KES 281 billion, retail lending expanded significantly.
Regional subsidiaries also showcased a strong performance, contributing 28% of the Group’s overall Profit before Tax, driven by a 49% growth in the corporate and institutional banking segment and a 28% increase in retail banking.
I&M Rwanda posted a 55% rise in Profit before Tax, with I&M Tanzania achieving a 73% growth in operating profit, and I&M Uganda reporting a 21% increase in operating income. Meanwhile, Bank One in Mauritius recorded a 16% year-on-year growth in operating income.
Regional CEO, Mr. Kihara Maina, highlighted the significance of these results as a testament to the success of the Group’s strategy. Announcing an interim dividend of KES 1.30 per share to be paid in January 2025, Mr. Maina reaffirmed the Group’s commitment to sustained profitability and value creation for its stakeholders.
“The 24% increase in profitability are markers of a strong start of our iMara 3.0 strategy. Based on the strong performance, the Board of Directors announced an interim dividend of KES 1.30 per share which will be paid out in January 2025. As we celebrate I&M Bank’s 50th anniversary, we remain committed to customer centricity, operational efficiency and digital transformation to sustain profitability in the coming years.” he stated.
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In Kenya, I&M Bank recorded a 21% increase in Profit Before Tax, primarily driven by a 37% growth in Net Interest Income. Revenue rose by 19% year-on-year, while operating profit increased by 17%. Initiatives such as the ‘Ni Sare’ integration with M-PESA and Airtel Money led to a 36% increase in the customer base, while the extension of the Ni Sare Kabisa proposition to small businesses in April 2024 resulted in a 270% surge in SME customer acquisition.
With over 600,000 customers now served, I&M Bank continues to bridge the financing gap for SMEs and MSMEs through innovative, last-mile solutions. These efforts have positively impacted over 2.5 million lives, with the Bank disbursing over KES 20 billion through ecosystem partnerships. The Bank’s emphasis on brand relevance has also driven a 14% improvement in brand awareness, marking the fastest growth in the sector.
Reflecting on these achievements, I&M Bank Kenya CEO, Mr. Gul Khan, emphasized the importance of customer trust and operational excellence.
“We are delighted to report double-digit growth in both revenue and profits. Our commitment to providing relevant financial solutions for Kenyans and investing in a distinctly Kenyan brand has led to a 14% increase in brand awareness from 20% to 34%. More importantly, our growth has been achieved while maintaining a strong focus on customer centricity, as reflected in our consistent NPS (Net Promoter Score) of over 70% throughout the year. As we celebrate our 50th anniversary, I extend my heartfelt gratitude to our customers for their trust and loyalty to I&M Bank. I would also like to thank my staff for their commitment and hard work.” he stated.