I&M Group PLC has recorded a 13.8 per cent increase in profit after tax to Sh8.2 billion for the nine months period to September 2023, driven by growth in operating income.
This is from Sh7.2 billion recorded during the same period last year.
"The operating income was supported by growth in both corporate and retail segments, as the Group saw its revenue diversification strategy yield fruit," the lender says in a statement.
Regional businesses accounted for 29 per cent of the Group's total operating income, which recorded a 19 per cent growth to close the quarter at Sh29.9 billion, up from Sh25 billion in 2022.
The growth in total operating income was driven by an 18 and 21 per cent growth in Net Interest Income and Non-Interest Income, respectively.
Loan loss provision closed at Sh4.6 billion, up from Sh3.6 billion as the Group says it maintained prudence in asset quality management.
The Group’s operating expenses, exclusive of loan loss provisions recorded an increase of 29 per cent year-on-year, to close at Sh14.6 billion, driven by continued investment in technology and people across all jurisdictions.
Commenting on the results, the Group's executive director Sarit Raja-Shah, said the business responded resiliently to the challenges in the operating environment to report profit margins.
"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," Raja-Shah said.
He added that the Group continues to successfully execute its iMara strategy, which is now in its third and final year, focusing on business growth, operational efficiencies, customer centricity and digital transformation.
The Kenyan subsidiary posted an operating income growth of 13 per cent year-on-year, a six per cent increase in operating profit and one per cent increase in profit before tax.
As part of the iMara strategy, the bank says it has driven Kenya's subsidiary growth in the adoption of its digital services, with over 90 per cent of customers initiating their transactions through digital channels.
I&M Bank Kenya CEO Gul Khan said the recorded performance is a reflection of their continued focus on providing solutions that are relevant to all Kenyans.
"We are especially keen to support our people as they navigate the tough macroeconomic environment. We remain committed and agile to our customers’ needs in providing relevant financial solutions and bringing our services closer to our customers,” Khan said.
The Group’s balance sheet also recorded a steady growth, with the asset value increasing by 27 per cent to close the quarter at Sh544 billion.
Loan portfolio grew by 24 per cent to reach Sh287 billion.
Customer deposits closed at Sh402 billion, reflecting a 31 per cent increase year-on-year.
