I&M Group PLC has announced a spike in its financial performance, reporting a 24% increase in Profit Before Tax for the third quarter of 2024, reaching KES 14.1 billion—up from KES 11.4 billion the previous year.
The latest results, released on November 19, 2024, highlight a substantial 20% growth in operating revenue, alongside an operating profit surge of 24% to KES 18.9 billion.
Key drivers of this success include a remarkable 37% rise in Net Interest Income, signifying the Group’s effective management of its lending portfolio and customer relationships.
“Our strong financial results are a testament to our unwavering commitment to customer-centricity, operational efficiency, and digital transformation,” remarked Mr. Kihara Maina, Regional CEO of I&M Group.
As we celebrate our 50th anniversary, this profit growth reflects our successful iMara 3.0 strategy and ongoing efforts to innovate in a fast-evolving market.
Despite the challenges posed by macroeconomic factors, including a slight increase in loan loss provisions from KES 4.6 billion to KES 5.5 billion—a move that underscores the group’s commitment to maintaining high-quality earnings assets—the bank demonstrated resilience.
- Operating expenses grew by 16%, driven by investments in technology and branch expansion across Kenya and Rwanda.
The Group’s total assets experienced moderate growth, marking a 4% increase year-on-year to KES 568 billion, with customer deposits climbing 3% to KES 414 billion, bolstered by digital innovations and improved product offerings.
- Interestingly, while retail lending showed growth, the overall loan portfolio dipped by 2% to KES 281 billion amidst ongoing economic fluctuations.
The positive trajectory was mirrored across I&M Bank’s regional operations, with 28% of the Group’s Profit Before Tax coming from subsidiaries outside Kenya. For instance, I&M Bank Rwanda recorded an impressive 55% increase in Profit Before Tax, while I&M Bank Uganda achieved a 37% leap in operating profit, demonstrating the region’s growing economic activity and the effective implementation of the Group’s strategic focus on growth and efficiency.
A standout performer, I&M Bank Kenya achieved a commendable 21% increase in Profit Before Tax and saw a staggering 270% surge in SME customer acquisition, thanks to its innovative ‘Ni Sare Kabisa’ initiative, which expanded its reach to small businesses.
The accessibility has significantly improved the bank’s customer base, which now exceeds 600,000, making I&M one of the fastest-growing banks in terms of customer numbers in the region.
During the announcement, I&M Bank Kenya CEO, Mr. Gul Khan, expressed gratitude towards the bank’s customers and staff, emphasizing their vital role in attaining these remarkable results.
“Our brand awareness has increased 14% this year, demonstrating the effectiveness of our strategy to offer relevant financial solutions to our customers,” he highlighted.
As part of their commitment to returning value to shareholders, I&M Group’s Board of Directors has declared an interim dividend of KES 1.30 per share, set to be distributed in January 2025.
