Archives: Press Releases & Announcements

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

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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

 

Nairobi, 23 August 2023: I&M Group PLC increased its operating income by 23% to KES 19.1 billion in the first half of 2023, up from KES 15.6 billion in the same period in 2022. The operating income was boosted by growth in both corporate and retail segments (29% and 28% year on year growth) as it saw its diversification strategy yield fruit.

 

The Tier 1 Bank recorded strong operating revenues across its markets, with regional businesses contributing 27% to its revenue.

 

The Group continues to successfully execute its iMara 2.0 strategy, which is now in its 3rd and final year, focusing on business growth, operational efficiencies, customer centricity and digital transformation. 

 

Key Financial Performance Highlights

Balance sheet highlights

The Group’s balance sheet grew steadily, with total assets crossing the KES 500 Billion mark increasing by 17% over the same period in 2022.

 

The loan portfolio grew by 17% to reach KES 270 billion partly attributable to retail lending through the Group’s digital platforms despite the challenging macro-economic conditions across most of its markets. 

 

Customer deposits closed at KES 357 billion, a 14% increase year on year, during the period as the Group continued focusing on product innovation and digitization. 

 

The Net Non-Performing Loans stood at KES 10 billion, a reflection of the challenging macro-economic environment.

                                                                              

Income statement highlights

The Group’s operating income recorded a strong growth of 23%. The overall profit declined marginally by 2% to KES 7.0 billion because of increase in loan loss provisions, as the Group maintained prudence. 

 

Growth in operating income was driven by a growth of 16% in Net Interest Income and 37% in Non-Interest Income for the period under review. 

 

The Group’s operating expenses, exclusive of loan loss provisions, stood at KES 9.3 billion, an increase of 28% year on year driven by continued investment in technology and people across all jurisdictions. 

 

Commenting on the results, Mr. Sarit Raja-Shah, Group Executive Director, I&M Group PLC, noted: “The Group has ensured adequate funding and sufficient capital buffers to uphold the present growth momentum as we continue to meaningfully impact customers. The rise in the Non-Performing loan book and provisions reflects our cautious approach to portfolio management amid a challenging business environment. As we move ahead, the Group's emphasis remains on expanding our portfolio and enabling our customers to achieve their business goals. 

 

I&M Bank Kenya

I&M Bank Kenya posted an operating income growth of 20% year on year, 17% increase in operating profit and a 6% decline in profit before tax, due to higher loan loss provisions. 

 

The successful implementation of the iMara 2.0 strategy resulted in growth in deposits, primarily Current and Savings Accounts , Customer assets and New-to-Bank relationships. Additionally, through relevant product innovation and marketing, the Bank has registered significant growth in brand awareness from 5% to 20% during the first half of the year.

 

As part of the strategy, the Bank has also seen a significant growth in the adoption of its digital services, with 93.5% of customers initiating their transactions through digital channels leading to the Bank being recognized by Finnovex East Africa for Excellence in Mobile Banking at the prestigious awards. 

 

Commenting on I&M Bank Kenya’s performance, I&M Bank’s CEO Mr. Gul Khan said: 

“In the first half of the year, our focus centered on providing relevant financial solutions designed for Kenyans. This included waiving of Bank to mobile wallet charges with the Ni Sare Kabisa campaign to cushion Kenyans against the high cost of living, the Unsecured Personal Loan of up to Kes 10 Million, Digital Unsecured Lending for personal customers and small businesses and Stock Financing. We take pride in our customer-centricity and plan to roll out several new branches over the next couple of months as we seek to move our financial services closer to our customers ,” said Mr. Khan.

 

Regional growth

Regional subsidiaries of the Group continued to grow steadily, with operating income contribution increasing to 27% from 25% in 2022. For the period ending 30th June 2023, 78.4% of I&M Group customers across the region were digitally active. 

 

I&M Rwanda reported a 15% increase in operating income 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 9% and 11% respectively, which led to growth in net interest income and non-funded income.

 

In Tanzania, I&M recorded a 56% increase in operating income to close at KES 1.4 billion and 108% increase in operating profit on the back of strong growth in total assets of 24%. Asset growth was supported by loans growth of 19% while deposits increased by 22%. 

 

I&M Uganda posted strong growth in operating income of 42% and an operating profit of 117%, as it continues integrating into the Group. Total assets reported a 28% year on year growth to close at KES 33 billion, with growth in the loan and deposit book at 42% and 13% respectively.   

 

The Group’s Joint Venture investment in Mauritius, Bank One, recorded a growth of 51% in operating income year on year, driven by the growth of the loan portfolio as well as higher Non-Interest Income.

 

Group Strategy & Outlook for 2023

I&M Group is in the final year of its iMara 2.0 strategy, which has been focused on enhancing its corporate strength while scaling up diversification into retail through an enhanced customer value proposition and building requisite capabilities. 

 

Speaking on the Group’s half year 2023 performance, the Group’s Regional CEO, Mr. Kihara Maina was positive about the Group’s forecast for the second half of 2023 on the back of a robust Group adoption of the iMara 2.0 strategy. 

“As we complete the final year of our iMara 2.0 strategy, we remain confident in the progress we have made in further steering I&M Group as Eastern Africa’s leading financial partner for growth. We shall continue to invest in rolling out solutions that meet our customer needs.  In line with this, plans are ongoing to roll out an end-to-end Trade Finance platform and a Bancassurance system,” said Mr. Maina. 

 

I&M Bank Group recently joined the United Nations Global Compact (UNGC) reaffirming its dedication to its sustainability  initiatives. This significant step aligns with the Group’s iMara 2.0 strategy to embrace sustainability and the UN Sustainable Development Goals (SDGs), thereby aiming to establish a resilient business across its subsidiaries.

 

I&M Group has undertaken various initiatives to reduce its carbon footprint, ensuring that sustainability remains at the core of its operations. The Group places particular emphasis on environmental responsibility, taking a proactive approach in identifying opportunities to achieve net-zero impact. This includes a focus on digital banking, transitioning to green energy, green financing products, and adopting green buildings. Notably, the recently inaugurated green headquarters in Rwanda serves as the lender's second green building after 1 Park Avenue in Nairobi.

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Notes to the Editor 

 

About I&M Group Limited

 

I&M Group PLC is a leading Regional Banking Group headquartered in Kenya, with a growing regional presence currently extending to Mauritius through a joint venture with Bank One, Tanzania, Rwanda, and Uganda. Since its inception in 1974, the Bank has evolved from a community financial institution to a publicly listed Kenyan-based regional commercial banking Group offering a full range of Corporate, Business, Premium and Personal Banking financial solutions. 

 

I&M Group prides itself on its strong values and key strengths of innovative service and strong customer relationships and through these pillars, I&M Group aspires to be Eastern Africa’s  Leading Financial Partner for Growth through provision of innovative and market driven financial solutions for its target segments.

 

For more information visit www.imbankgroup.com   

 

I&M Group Media Contact

 

Mwihaki Wachira

Group General Manager, Marketing & Communication 

[email protected] 

+ 254 719 088 205

Michael turner The Board of I&M Group PLC ('the Company') announces the retirement of Mr. Michael Turner as a Non-Executive Director on the Board with effect from 1st August 2023 upon completion of his nine (9) year tenure. Mr. Turner served as Chairman of the Board Nomination, Remuneration & Governance Committee and a member of the Board Audit & Risk Management Committee until his retirement. During his tenure, Mr. Turner made significant contributions to the growth and success of the Company through his valuable counsel to the Board particularly in the areas of strategy, investments, governance, audit and finance. The Board of I&M Group PLC wishes to sincerely thank Mr. Turner for his invaluable contribution to the Company, unwavering commitment, and steadfast support during his tenure on the Board and wishes him every success in his future endeavors. Mr. Naval Sood The Board of I&M Group PLC is pleased to announce the appointment of Mr. Naval Sood as a Non-Executive Director on the Board with effect from 15th August 2023. Mr. Sood is an experienced corporate finance professional with over 40 years' experience in mergers & acquisitions (particularly in the financial services sector), corporate finance, capital market transactions design and implementation, management consulting and audit. He is a thought leader in financial services and capital markets developments in sub-saharan Africa and has authored several presentations, articles and press publications and served on committees developing Kenya's capital market regulatory framework. Mr. Sood recently founded AstuteLogic Advisory Limited, a boutique advisory services firn.. Prior to this, until 2022, he was with Stanbic Bank Kenya investment banking division for 11 years where he held a senior role as Head of Corporate Finance, East Africa and led teams that helped design and deliver some of the largest and most complex merger and acquisition and capital market transactions in East Africa. Mr. Sood holds a Master's in Business Administration (MBA) from London Business School and is a Certified Public Accountant (CPA-K) and Fellow of the Association of Chartered Certified Accountants (ACCA). Mr. Sood brings on board a wealth of knowledge and expertise and the Board is pleased to welcome him to I&M Group PLC.

The Board of I&M Group PLC ('the Company') hereby announces the resignation of Mr. Suleiman Kiggundu Jr. as a Director of the Board with effect from 15th June 2023. Mr. Kiggundu has served as a Director on the Board since 2018 as well as Chairperson of the Board Strategy Steering Committee. During his tenure, Mr. Kiggundu's extensive leadership experience was instrumental in overseeing execution of the Group's strategy across the region. Mr. Kiggundu will continue in his role as Chairman of the Board of I&M Bank (Uganda) Limited. The Board takes this opportunity to sincerely thank Mr. Kiggundu for his insightful and invaluable contributions to the Board as well as his leadership and guidance on strategic matters and wishes him the very best for the future.   BY ORDER OF THE BOARD 30th June 2023 DISCLAIMER: This announcement has been issued with the approval of the Capital Markets Authority pursuant to the Capital Markets (Securities)(Public Offers, Listings and Disclosures) Regulations 2002. As a matter of policy, the Capital Markets Authority assumes no responsibility for the correctness of the statements appearing in this announcement. I&M Group PLC is regulated by the Central Bank of Kenya and the Capital Markets Authority

The Board also wishes to announce the appointment of Mr. Oliver Merrick Fowler as Non-Executive Director and Chairman of the Board with effect from 13th June 2023. Mr. Oliver Fowler is a qualified Kenyan Advocate and an English Solicitor. He has retired from full-time legal practice and was a partner at Kaplan & Stratton Advocates for over 37 years. His work encompassed commercial work, particularly financial, corporate, and taxation matters. He has been extensively involved in project finance, capital markets, banking, and foreign investment sectors. He holds an LLB from the University of Bristol and was admitted to the Kenyan Bar in 1979. Mr. Fowler is the immediate former Chairman of I&M Bank Limited a role he has served well for the past two years. Prior to that, Mr. Fowler served as a Director on the Board of I&M Group Plc. He currently serves as Chairman on the Board of REA Vipingo Plantations and serves on the boards of several companies. The Board congratulates and welcomes Mr. Fowler back to the Board and wishes him all the best in his new role. BY ORDER OF THE BOARD 15th June 2023

The Board of I&M Group PLC (‘the Company’) announces that Mr. Daniel Ndonye retired as a Director and Chairman of the Board with effect from 25th May 2023 upon conclusion of the Annual General The meeting was held on the same date. Mr. Ndonye joined the Board on 14th June 2013 and has served as Chairman until his retirement, having successfully completed his tenure on the Board. During his tenure, Mr. Ndonye played an instrumental role on the Board and has helped guide the Group’s transformation and expansion in the region. His insightful and steady leadership has been invaluable to the Group. The Board of I&M Group PLC takes this opportunity to sincerely thank Mr. Ndonye for his dedicated service, commitment, and stewardship during his tenure and wishes him every success in his future endeavors. BY ORDER OF THE BOARD 15th June 2023

The Board also wishes to announce the appointment of Ms. Stella W. Gacharia-Kariuki as Joint Secretary to the Board with effect from 11th May 2023. Ms. Gacharia has experience spanning over nineteen years in various roles in banking. Prior to joining I&M Bank Limited as Company Secretary in April 2020, she was the Head, Legal & Statutory Compliance in Equity Bank and the Deputy Company Secretary, Legal Counsel & Ag. Company Secretary before that at the then Barclays Bank of Kenya (now Absa Bank Kenya). Ms. Gacharia holds a Master of Business Administration (MBA) from University of Leicester, a Post Graduate Diploma in Law from the Kenya School of Law and a Bachelor of Laws degree (LL.B) from University of Nairobi. She is also a Certified Public Secretary CPS (K) and an Advocate of the High Court of Kenya. The Board is pleased to welcome Mr. Maina and Ms. Gacharia and wishes them all the very best in their roles. 

 

BY ORDER OF THE BOARD 25th May 2023