I&M Group has posted a post-tax profit growth of 14 per cent to Sh8.2 billion for the 9-month period ending September 30, 2023, from Sh7.2 billion in a similar period in 2022.
The Group has credited this growth in operating income to improvements in its corporate and retail segments as it saw its robust strategy on revenue diversification bore fruit.
I&M’s regional businesses contributed 29 per cent of its operating income as it focused on business growth, operational efficiencies, customer centricity and digital transformation.
The Tier 1 bank’s balance sheet expanded significantly with the Group’s total assets experiencing a 27 per cent growth over the same period in 2022 to close at Sh544 billion.
I&M’s loan portfolio expanded by 24 per cent to reach Sh287 billion despite the tough macro-economic conditions experienced across most of the regional markets it operates in.
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The bank noted that one of the key factors that contributed to this significant growth in its loan uptake to its strategy that focused on retail lending through its digital platforms.
Customer deposits grew by 31 per cent year on year to close at Sh402 billion, with both Current & Savings Accounts (CASA) and Term Deposits witnessing notable growth.
I&M Group’s operating income increased by 19 per cent to Sh29.9 billion from Sh25 billion recorded in Q3 2022 as its loan loss provision increased by 27.8 per cent to Sh4.6 billion from Sh3.6 billion.
A growth of 18 per cent in Net Interest Income and a 21 per cent growth in Non-Interest Income contributed to the total operating income expansion in the period under review.
Operating expenses, excluding loan loss provisions, posted a 29 per cent growth year on year to Sh14.6 billion on the back of more investment in its technology and customers.
“I am pleased to report that the business responded resiliently to the challenges in the operating environment,” indicated I&M Group Executive Director Sarit Raja-Shah.
He added: “There is an overall positive growth across all our businesses and geographies and underlines our commitment as a bank to finance the recovery of all our countries of presence.”
I&M Bank Kenya’s operating income grew by 13 per cent year on year, while its operating profit grew by 6 per cent, as it realized a 1 per cent increase in its profit before tax.
The bank revealed that more than 90 per cent of its customers initiated their transactions through its digital channels as its enhanced digital strategy continued bearing fruit.
“We are especially keen to support our people as they navigate the tough macroeconomic environment. Through our Ni Sare and Largest campaigns, we have proven that there is still an opportunity for us to lead in the financial services sector by challenging the status quo,” stated I&M Bank CEO Gul Khan.
I&M Bank regional subsidiaries:
• I&M Rwanda posted an 18 per cent growth in operating income driven by a growth in loans and deposits by 20 per cent and 32 per cent respectively, resulting in a surge in net interest income and non-funded income.
• I&M Tanzania posted a 51 per cent growth in operating income to Sh2.2 billion and a 102 per cent operating profit growth driven by a 22 per cent growth in total assets, which was backed by a 19 per cent growth in loans and a 24 per cent deposits growth.
• I&M Uganda recorded a growth in operating income of 52 per cent and an operating profit of 222 per cent, as total assets grew by 30 per cent to Sh35 billion, as the loan and deposit books grew by 57 per cent and 23 per cent respectively.
• Bank One, the Group’s Joint Venture investment in Mauritius, posted a 54 per cent growth in operating income, driven by the expanded loan portfolio and Non-Interest Income.
“We are now almost at the end of our iMara 2.0 strategy, and despite the macroeconomic challenges we have faced in 2023, we have remained on track to achieving our strategic ambition as Eastern Africa’s leading financial partner for growth,” said I&M Group Regional CEO Kihara Maina.
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