I&M HOLDINGS PLC DECLARES HISTORIC BONUS ISSUE FOR SHAREHOLDERS
27/03: Banking services group, I&M Holdings PLC has announced a one to one bonus share issue.
Commenting on the development, Mr. Daniel Ndonye, Chairman, I&M Holdings PLC noted, “This is the first ever bonus issue declared by the Group. The Group has enjoyed strong support from its shareholders, and the bonus issue is just reward for the faith shown to us by our shareholders.”
Profit Before Tax for the Group increased by 16.20% to Kshs 11.4 billion up from Kshs. 9.9 billion recorded in 2017. The Group with operations in Kenya, Mauritius, Rwanda and Tanzania was able to navigate a challenging operating environment, on the back of its corporate strategy.
Commenting on this performance, Mr. Ndonye, further noted, “The year was not devoid of challenges, but also presented opportunities that I&M Holdings PLC was able to leverage on. We want to continue being the trusted business partner for our customers, and ensure that we can meet all their financial requirements, with a varied suite of product and service offerings”.
The Group’s foreign subsidiaries also supported the overall performance contributing 19.80% of the overall profit before tax. “We shall continue to take advantage of opportunities presented in these countries and others as and when they arise to boost the Group’s performance.” Mr Ndonye added.
On the contribution from the flagship unit, I&M Bank Kenya, the Chairman termed the results highly commendable, despite the challenges presented by the continued impact of the interest rate capping law, which continues to affect performance across the industry and the Kenyan economy.
He emphasised that mainly due to the general under performance by the Kenya banking sector, the Group’s loan book recorded a modest growth of 8.97% compared to December 2017, to Kshs. 166 billion up from Kshs. 153 billion. This was despite a significant increase in the deposits base of 25.91%, from Kshs 169.2bn in December 2017 to close at Kshs 213.1bn.
The banking industry primarily raises deposits for financial intermediation i.e transfer funds from those who have surplus to those in need of funds. Within the interest capping regime, the industry is extremely curtailed and forced to place these funds in relatively low risk assets.
The Executive Director of the Bank, Mr Sarit Raja Shah, underscored the significant investment made in the last two years. “Besides management time and effort, we have invested over Kshs 1 billion in new systems across the Group.
I&M Holdings PLC recorded an increase in its Non-Performing Assets as compared to a similar period last year to stand at Kshs. 23.8bn up from Kshs. 19.4bn. The Group indicated its continued focus on strengthening its processes and taking remedial actions to improve the loan book quality.
The Group’s Total Assets recorded an impressive growth of 20.16% percent to close at Kshs. 288.5bn up from Kshs. 240.1 bn recorded in 2017.
Kihara Maina, CEO, I&M Bank, Kenya noted, “2018 marks an important year for the Group as we reaped early from the benefits of our Corporate Strategy. Our revenue has gradually decreased its reliance on funded income and has witnessed the Bank’s resilience against environmental adversity.”
We will further continue to pursue several strategic initiatives that we believe will place us in a better position to counter the current operating environment and take advantage of existing opportunities in our bid to enhance our shareholders’ value”, he added.
Last year, the I&M Group continued its strategic investments, by completing the acquisition of Youjays Insurance Brokers Limited.
In its endeavour to establish a one-stop centre for all financial solutions, the I&M Bank Limited continued to roll out market driven solutions such as unique value propositions to customers that presented specially packaged products and services for the Premium, Business and Young Professionals segments.
The Group, during the year further secured a funding line of upto $ 15 million from FMO, the Dutch Development Bank to facilitate onward lending to the Bank’s SMEs, Corporate and Institutional customers in its bid to grow the loan book portfolio.
I&M Holdings PLC in 2018 made strategic investments in its financial systems such as the launch of the Digital Factory, otherwise known as iCube, which has been spearheading the roll out of transformative digital financial solutions, aimed at improving the Bank’s operational efficiencies and enhancing delivery standards.
Going forward, the prospects are bright and I&M Holdings PLC expects to continue to deliver to market a wider portfolio of solutions to foster a stronger set of Financial results for 2019.
Notes to the editor
About I&M Bank Limited
I&M Bank is a leading commercial bank headquartered in Kenya, with a growing regional presence currently extending to Mauritius, Tanzania and Rwanda. Since its inception in 1974, the Bank has evolved from a community financial institution to a publicly listed Kenyan-based regional commercial bank offering a full range of Corporate, Business, Premium Client and Personal banking services.
I&M Bank is wholly owned by I&M Holdings PLC which is listed on the Nairobi Stock Exchange. CDC Group PLC owns approximately 10.68% of I&M Holdings PLC. I&M prides itself on its strong values and key strengths of innovative service and strong customer relationships and through these pillars, I&M Bank aspires to be the banking powerhouse in East Africa for middle to large and premium clients through provision of innovative and market driven banking solutions for its target segments.
For more information visit www.imbank.com.