I&M Holdings PLC Quarter 1 2019 Profit After Tax jumps by 30%
28/05: Banking services Group, I&M Holdings PLC has announced a 30% after tax profit growth for its 2019 Quarter 1 financial results.
The Group with operations in Kenya, Mauritius, Rwanda and Tanzania was able to navigate through a challenging operating environment to post a Kshs 2.4 billion profit up from Kshs 1.8 billion posted in March 2018.
The Group’s lending recorded a modest growth of 11% compared to March 2018, of Kshs 168.9 billion up from Kshs 152.7 billion of the similar period last year. The Group mobilised deposits across various customer segments, with a steady growth from Kshs 171.7 billion in March 2018 to close at Kshs 221.2 billion denoting an increase of 29%.
The Gross Non-Performing Assets (NPAs) recorded a slight increase of Kshs 23.7 billion up from Kshs 22.4 billion of the similar period last year, highlighting increased lending risk in the various industries such as Manufacturing, Real Estate, Building and Construction that the Bank finances.
Despite the marginal increase on NPAs, the Group has been able to reduce on its loan loss provisions, owed to increased loan recoveries and strong work outs. The Group has over time tightened its internal policies and controls to ensure losses from the NPAs are minimized, and also increased its focus on customer’s satisfaction by meeting clients’ needs in a timely manner. This includes supporting our clients with NPAs.
The Group’s Total Assets recorded an impressive growth to Kshs 299.6 billion up from Kshs 246.3 billion.
The net interest income increased marginally from Kshs. 3.27 billion to Kshs. 3.34 billion owed to significant growth in interest income. The Group’s total interest income recorded a modest growth of 9% to Kshs 6.1 billion compared to Kshs 5.6 billion recorded in a similar period last year.
The Group recorded significant improvement in its non-funded income bolstered by its investment in its card products and alternate banking channels that has led to diversified revenue streams.
Commenting on the financial results, Daniel Ndonye, I&M Holdings PLC Chairman, noted, “The Group has continued to take advantage of opportunities presented by the operating environment to record a steady growth trajectory on its business performance. The performance is as a result of a sustained five year strategy, which is anchored on enabling the growth of a deeply customer-focused organisation responsive to the changing dynamics of the financial sector. The Group’s regional bank operations subsidiaries supported the overall performance, contributing 20 % of the overall profit before tax.”
“During the quarter under review, the Group, benchmarking on its corporate strategy, continued to invest in robust technology-based financial solutions focused on enhancing the customer journey, by providing convenient access to a host of products and services. Key to note was the revamp of the mobile banking platform, which is one of the Bank’s interventions in digitizing its business.” Ndonye added
“In addition, the Group upgraded its core-banking system in its endeavour to increase operational efficiencies to enhance delivery standards, while providing a platform to develop more technology savvy financial solutions for its customers.” Ndonye concluded.
In its endeavour to establish a one-stop centre for all financial solutions, the Group’s flagship subsidiary, I&M Bank, Kenya during the quarter under review continued to roll out market driven solutions. Key to note were strategic partnerships aimed at growing the Bank’s interest income portfolio such as the partnership with MHH International, to provide upto 80 percent Asset Financing for customers to safely and conveniently import high end vehicles from the UK, Australia and Japan. MHH International is a UK based company, with an agent and office in Nairobi, involved in the business of sourcing and shipping of high range motor vehicles from UK, Australia and Japan.
In addition, I&M Bank, Kenya launched the Medical Equipment Financing product, a tailormade financing solution for health care service providers which covers a range of equipment such as: X-rays, Dialysis, Theatre, Intensive Care Unit, Ultrasound Machines, Radiology, Sterilisation, and Laboratory among others. They will also benefit from an All Risk insurance cover for the financed equipment at a discounted premium through I&M Insurance Agency Ltd. The Bank will further provide competitive rates under insurance premium financing (IPF) for this Asset Financing option, aimed at easing the burden to make lump sum insurance premium payments in convenient monthly instalments.
In line with the Group’s sustained efforts on strong Corporate Governance, I&M Bank, Kenya during the quarter under review, appointed two new directors, with an objective of further strengthening the Board Structure. The new directors namely Mr. Nikhil Hira and Mr. Muchemi Wambugu bring on board vast wealth of experience and knowledge, which has complemented the Board’s mandate to provide strategic direction on the Bank’s operations. Mr. Hira, a Director at Bowman and former partner of Deloitte East Africa, joined the board in February 2019. Mr. Wambugu is a Management Consultant and founder of Sirius Consult and joined the Board in February 2019.
The appointment followed after retirement of two long serving directors namely Mr. Eric Kimani and Mr. Mugo Kibati who served on the board since May 2005 and December 2008 respectively.
Going forward, the prospects are bright and I&M Holdings PLC expects to continue to deliver to the market a wider portfolio of solutions to foster a stronger set of Financial results for the next quarter.
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.