•Group’s loan portfolio grew by 30% to Sh311 billion, partly attributed to the extension of retail lending through the bank’s digital platforms.
•Customer deposits closed at Sh417 billion, recording a 33 per cent increase year-on-year, largely attributed to growth in CASA (Current Accounts and Savings Accounts).
Regional lender I&M has recorded a 15 per cent growth in profit after tax to Sh13.3 billion for the year ended December 2023, driven by growth in operating income.
This is up from the Sh11.6 billion net profit reported in 2022, as the lender continued to cement its position in the region, as it diversified its business from the corporate and institutional banking, increasing lending to the retail and SMEs.
During the year, the Group’s loan portfolio grew by 30 per cent to Sh311 billion, partly attributed to the extension of retail lending through the bank’s digital platforms, with a net non-performing loan ratio at five per cent as of December 2023.
Customer deposits closed at Sh417 billion, recording a 33 per cent increase year-on-year, largely attributed to growth in CASA (Current Accounts and Savings Accounts).
The Group’s balance sheet grew steadily with total assets increasing by Sh142 billion to Sh580 billion.
The regional financial services provider with operations in Kenya, Rwanda, Tanzania, Uganda and Mauritius saw operating income grow by 20 per cent from Sh36 billion in the previous year, to Sh43 billion.
About 20 per cent of this revenue came from new strategic initiatives during this phase, management during an investor briefing in Nairobi, on Monday.
Growth in operating income was driven by a 25 per cent increase in net interest income on the back of rising interest rates and a 10 per cent growth in non-interest income for the period under review.
The non-interest income growth is attributed to growth in income from banking transactions and foreign exchange trading.
Meanwhile, the group’s operating expenses, exclusive of loan loss provisions, rose 26 per cent year-on-year to close at Sh20 billion on account of branch expansion, inflationary pressures and as a result of increased investment in staff and technology.
The Group’s share of profit from its joint venture in Mauritius, Bank One Limited recorded a year-on-year growth of 82 per cent to close at Sh1.2 billion.
“Building upon the success of our recently concluded iMara 2.0 strategy, we have witnessed remarkable achievements in both profitability and growth in our various business units,” Group regional CEO Kihara Maina said.
As the lender ventures into the next chapter of its strategy (iMara 3.0 strategy), the primary aim will be to sustain the growth through continued focus on enhancing its digital solutions platforms and building an ecosystem to support customers’ businesses, he added.
Kenya continued to account for the biggest share of its business in the region (76 per cent of its profit before tax and 70 per cent of its assets.
Rwanda, Mauritius, Uganda and Tanzania accounted for 12 per cent, eight per cent, three per cent and two per cent of the Group’s gross earnings, respectively.
I& M Bank Kenya posted an operating income growth of 14 per cent year on year, seven per cent increase in operating profit and a one per cent drop in profit, due to higher loan loss provisions.
Commenting on I&M Bank Kenya’s performance, CEO Gul Khan said: "Throughout the year, our primary focus was on delivering new and relevant financial solutions designed to solve problems for Kenyans which resulted in a 27 per cent increase in our total customers and over 100 per cent increase in digital transactions."
The lender saw a significant growth driven by innovative solutions such as the ongoing "Ni Sare Kabisa" free transfers to M-Pesa and Airtel Money and the largest unsecured personal loan of up to Sh10 million.
I&M Group has been on a transformation journey since the beginning of 2016, deepening its presence in the Eastern Africa market while also penetrating in key growth segments, with new branches.
As a result of the strong performance, the board has proposed a total dividend of Sh2.55 per share, up from Sh2.25, bringing the total payout to Sh4.2 billion, up from Sh3.7 billion the previous year.