I&M Group has posted a remarkable performance for the third quarter of 2024, showing a 24 per cent increase in Profit Before Tax (PBT) to Sh14.1 billion, up from Sh11.4 billion in 2023.

This growth was largely driven by a 20 per cent rise in operating revenue and a 24 per cent increase in operating profit, reaching Sh18.9 billion.

A significant 37 per cent surge in Net Interest Income further boosted results, despite a slight uptick in loan loss provisions from Sh4.6 billion in 2023 to Sh5.5 billion in 2024, reflecting prudent asset management.

On the balance sheet, total assets grew by 4 per cent year-on-year to Sh568 billion. Customer deposits saw a 3 per cent increase to Sh414 billion, supported by innovative product offerings and enhanced digital solutions.

However, the Group’s loan portfolio contracted by 2 per cent to Sh281 billion, with Net Non-Performing Loans (NPLs) standing at Sh14 billion, impacted by ongoing macroeconomic challenges.

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While regional subsidiaries demonstrated strong growth in their local currencies, the appreciation of the Kenyan Shilling slightly dampened their performance.

The Group’s regional performance highlighted the success of its iMara 3.0 strategy, which contributed significantly to the strong earnings.

A key highlight was the growth in corporate and institutional banking, which saw a 49 per cent increase, alongside a 28 per cent rise in retail banking, with regional operations accounting for 28 per cent of the Group’s total PBT.

Regional CEO Kihara Maina attributed the 24 per cent increase in profitability to the successful implementation of the iMara 3.0 strategy.

He highlighted that the Board of Directors had declared an interim dividend of Sh1.30 per share, payable in January 2025

“The 24 per cent increase in profitability marks a strong start for our iMara 3.0 strategy. In recognition of our solid performance, the Board has declared an interim dividend of Sh1.30 per share, payable in January 2025," Kihara stated.

"As we celebrate I&M Bank’s 50th anniversary, our focus on customer centricity and operational efficiency remains paramount in sustaining future growth.”

I&M Bank Kenya's Performance: Focus on Accessibility and Growth

I&M Bank Kenya continued its growth trajectory with a 21 per cent increase in PBT, largely driven by a rise in Net Interest Income.

The bank recorded a 19 per cent increase in revenue and a 17 per cent rise in operating profit.

Key to this success was the introduction of the ‘Ni Sare’ initiative, a free banking service for M-PESA and Airtel Money users, which contributed to a 36 per cent year-on-year increase in its customer base.

The extension of this proposition to small businesses (Solo Biz) in April 2024 led to a remarkable 270 per cent surge in SME customer acquisition.

“We are thrilled to report double-digit growth in both revenue and profits,” said I&M Bank Kenya CEO Gul Khan.

“This achievement reflects our commitment to providing relevant financial solutions, with a 14 per cent increase in brand awareness and a consistent NPS of over 70 per cent throughout the year. We are proud to serve over 600,000 customers and positively impact over 2.5 million lives through strategic collaborations.”

Regional Highlights: Growth Across I&M Group Subsidiaries

I&M Group’s regional subsidiaries also posted strong results:

I&M Rwanda saw a 32 per cent increase in operating income and a 55 per cent surge in PBT, supported by a 20 per cent rise in deposits and a 1 per cent increase in loans. In local currency terms, loans grew by 27 per cent, and deposits by 52 per cent.

I&M Tanzania recorded a 34 per cent increase in operating income and a 73 per cent rise in operating profit. Despite currency translation effects, local currency results showed an 11 per cent increase in loans and a 19 per cent rise in customer deposits.

I&M Uganda achieved a 21 per cent increase in operating income and a 37 per cent rise in operating profit. Total assets grew 6 per cent to Sh37 billion, with loan and deposit growth at 24 per cent and 7 per cent, respectively.

Bank One, Mauritius, saw a 16 per cent increase in operating income, despite challenges in Shterms due to currency fluctuations.

Focus on Digital Transformation

I&M Group continues to prioritize digital accessibility, with 83 per cent of customers across the region actively engaging through digital platforms.

This reflects the Group’s ongoing commitment to innovation and enhancing customer experience through its digital transformation initiatives.

Looking Ahead

As I&M Group celebrates 50 years of service excellence, it remains focused on delivering sustainable growth and value for its stakeholders.

With strong financial performance, a customer-centric approach, and a strategic emphasis on digital solutions, I&M Group is well-positioned for continued success in the years to come. well-positioned for continued success in the years to come.