Archives: Press Releases & Announcements

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

The Board of I&M Group PLC (formerly I&M Holdings PLC) ('the Company') is pleased to announce the appointment of Ms. Risper Genga Ohaga as an Independent Non-Executive Director of the Company. Ms. Ohaga is a seasoned finance professional with over 23 years of experience in Financial Management, Strategy, Audit, and Risk Management spanning multiple countries. Ms. Ohaga currently serves as the Group Chief Financial Officer of East African Breweries Limited (EABL), a subsidiary of Diageo Group. She also sits on the Board of EABL and its subsidiaries. She holds a Bachelor of Commerce (BCom) from the University of Nairobi, is a Certified Public Accountant of Kenya (CPA-K), and is a Certified Internal Auditor CIA). The Board is pleased to welcome Ms. Ohaga to the I&M Group PLC Board. Her in-depth business and financial expertise will bring added value to our board. By Order of the Board 20th February 2023

The Board of I&M Group PLC (formerly I&M Holdings PLC) ("the Company') is pleased to announce the appointment of Mr. Christopher Kihara Maina as an Executive Director of the Company with effect from 25th April 2023. This follows the resignation of Mr. Allan Christopher Michael Low upon successful completion of his engagement. On behalf of the Board, we wish to thank Mr. Low for his service on the Group Board.

 

Prior to his appointment as the Group's Regional CEO with effect from 1st March 2023, Mr. Main was the Chief Executive Officer of I&M Bank in Kenya having held this position since May 2016. He is a seasoned banker with experience spanning close to 30 years in banking mostly in senior executive leadership roles. Prior to joining I&M Bank, he was the Managing Director of the then Barclays Bank Tanzania (now Absa Bank Tanzania). In his role as Regional CEO, Mr. Maina will drive the Group's regional strategy to enhance the Group's performance, brand value and visibility across the region where the Group has a presence. Mr. Maina holds a Bachelor of Science degree in Mathematics from Moi University and an Executive Master of Business Administration in Finance from Chicago Booth School of Business.