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I&M Group Reports a 25% Growth in Profit Before Tax

Nairobi, 26th March 2025 – I&M Group PLC has recorded a Profit Before Tax of KES 20.8 billion for the period ended 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 total assets grew by 0.3% 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).

Income and Profitability:

• Group synergies contributed to a 57% increase in 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 while non interest income 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 Groupwide sustainability action plan resting on three pillars: Enabling Last Mile Financial Solutions, Enhancing Quality of Lives, and Building Sustainable Businesses."

I&M Bank Kenya

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 recognised as the top bank in Kenya for consumer sentiment on social media by DataEQ."

Regional Expansion and Growth

I&M Group’s regional subsidiaries contributed 29% to overall profitability compared to 24% in the prior year. Non-branch transactions accounted for 8 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.”

Commitment to Sustainable Growth

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.

-ENDS-

Notes to Editor

About I&M Bank Limited

I&M Bank is a leading Tier 1 commercial bank headquartered in Kenya, with a growing national presence currently extending to 62 branches spread over 22 counties. Since its inception more than 5 decades ago, the Bank has grown to a full-service commercial bank offering a full range of corporate, business and personal financial services solutions.

I&M Bank is wholly owned by I&M Group PLC, which is listed on the Nairobi Securities Exchange. I&M Bank prides itself on its strong values and key strengths of innovative service and best customer experience. Through these pillars, I&M Bank aspires to be Kenya’s leading Financial Partner for Growth through provision of innovative and customer-driven financial services solutions for its target segments.

For more information visit www.imbankgroup.com

I&M Group PLC

I&M Group has a long-standing presence in the Kenyan market with presence in banking, insurance and real estate. The Group offers a full range of banking and financial services covering corporate, business and personal banking, wealth management, bancassurance and advisory services with presence spanning across five countries in Kenya, Uganda, Tanzania, Rwanda and in Mauritius through a joint venture with CIEL Group (Bank One).

I&M Group PLC is regulated by the Central Bank of Kenya, Capital Markets Authority of Kenya and the Nairobi Securities Exchange.

For more information visit www.imbankgroup.com

I&M Bank Media Contact

Seline Awuor

AG, Group Head of Marketing

[email protected]

+ 254 708 858 944

The Board of l&M Group PLC is pleased to announce the appointment of Ms. Brenda Wangari Gichuki, also known as Ms. Brenda Wangari Mugo, as an Independent Director on the Board with effect from 29th November 2024. Ms. Mugo is an experienced finance professional with over 27 years' experience in Corporate and Investment Banking, with a focus on relationship management for various client segments including financial institutions. Ms. Mugo recently transitioned into business consulting where she provides financial crime compliance advisory and anti­money laundering consultancy to financial institutions. Prior to this, until 2022, she was the Executive Principal, Head of Financial Institutions at Standard Chartered Bank Nairobi. Ms. Mugo begun her career in Citibank N.A. Kenya where she worked for 18 years up to 2014, rising through the ranks to the position of Vice President­Head of Financial Institutions East Africa. Ms. Mugo holds a Master of Arts, Leadership in Development Finance from Frankfurt School of Finance & Management, Germany and a Bachelor of Arts in Management from Hood College, USA. She is also a Board member, NED Peponi Securities Investment Ltd and NED lmani Capital Ltd. Brenda also sits on the Africa Secretariat of the Global Coalition for the Fight against Financial Crime (GCFFC). The Board is pleased to welcome Ms. Mugo to l&M Group PLC.

Nairobi, 25th March 2024: I&M Group PLC has recorded a Profit After Tax of KES 13.3 billion for the year ended 31^st December 2023. 

 

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

 

In the context of the Group’s strategic focus, the 2023 performance is a clear affirmation that the iMara2.0 strategy which came to an end 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. 

 

Key Financial Performance Highlights 

 

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 at 5% as of 31^st 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 technology.
• 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. As we venture into the next chapter with our iMara 3.0 strategy, our primary aim is to sustain the growth through continued focus on enhancing our digital solutions platforms and building an ecosystem to support our customers’ businesses, as we seek to become Eastern Africa’s Leading Financial Partner for Growth."

 

I&M Bank Kenya

I&M Bank Kenya posted an operating income growth of 14% year on year, 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 a significant growth in the adoption of 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."

 

Regional growth

The Group’s regional subsidiaries continued to show steady growth, contributing 24% to the Group’s overall profitability. For the period ending 31^st December 2023, 78% of I&M Group customers across the region were digitally active. Non-branch transactions also increased to 81%.

I&M Bank in Rwanda reported a 24% increase in Profit Before Tax for the period under review. The Bank’s strong performance was driven by increased economic activity in the region, with loans and deposits growing by 48% and 39% respectively, which led to growth in Net Interest Income and Non-Funded Income.

In Tanzania, the Bank recorded a Profit Before Tax of KES 309 million up from a loss of KES 689 million in 2022 on the back of strong growth in total assets of 47%, with loans and deposits growing by 45% and 55% respectively. 

I&M Bank Uganda posted strong growth in operating income of 41%. Total assets reported a 44% year on year growth to close at KES 38 billion, with growth in the loans and deposits book at 53% and 38% respectively.   

 

The Group’s joint venture investment in Mauritius, Bank One, recorded a growth of 80% in Profit Before Tax year on year, driven by the growth of the loan portfolio as well as higher non-interest income.

50 Years of I&M Bank 

 

I&M Bank celebrates its golden jubilee this year marking 50 glorious years since its incorporation in 1974. The entrepreneurial spark of the Founder and Chairman Emeritus, Mr. SBR Shah, MBS ignited a vision of greatness that has seen I&M Bank grow from a community-based lending outfit to a regional financial services Group with presence in 5 countries

-END-

 

 

Notes to the Editor

 

Highlights of iMara 2.0 Strategy

I&M Group has been on a transformation journey since the beginning of 2016, deepening its presence in the Eastern Africa market while also penetrating in key growth segments; iMara 2.0 set the foundation towards being a diversified banking group.

 

A summary of the performance in the 3 years to 2023:

 

Financials

• Return on Equity has grown to 15% from 10% in 2020.   
• Profit Before Tax up from KES 10.9 billion in 2020 to KES 16.7 billion in 2023. 
• 22% of the Group revenue is from new business.  

 

Non-Financials

• The Group’s continues to build a relevant brand evidenced by an enhanced Net Promoter Score of 71% in 2023 from 34% in 2020. Customer numbers went up to 560,000 from 250,000 during the same period. 
• Digitally active customers increased to 78% in 2023 with 81% of the total transactions done through digital channels. The number of transactions increased to 29 million in 2023 from 6.2 million in 2020 with a value of KES 1.2 trillion. 
• The Group employee engagement increased to 78% from 75% in 2020.

About I&M Group PLC 

I&M Group has a long-standing presence in the Kenyan market with presence in banking, insurance and real estate. The Group offers a full range of banking and financial services covering Corporate & Institutional Banking, Personal & Business Banking, Bancassurance, Wealth Management, and Advisory services with presence spanning across 5 countries in Kenya, Uganda, Tanzania, Rwanda and Mauritius through a joint venture with CIEL Group (Bank One). 

 

I&M Bank was founded in 1974 as a financial services company and later converted to a commercial bank. It is now a wholly owned subsidiary of I&M Group Plc, a public company listed at the Nairobi Securities Exchange (NSE). 

I&M Group PLC is regulated by the Central Bank of Kenya, Capital Markets Authority of Kenya and the Nairobi Securities Exchange.  

For more information visit www.imbankgroup.com

I&M Bank Media Contact

Mwihaki Wachira

Group General Manager 

[email protected]

+ 254 719 088 205