I&M Group PLC Achieves 24% Growth in Profit Before Tax for Q3 2024

I&M Group PLC has reported a remarkable 24% increase in profit before tax (PBT) for the third quarter of 2024, amounting to KES 14.1 billion compared to KES 11.4 billion in the same period last year. This achievement underscores the group’s commitment to sustainable growth, innovation, and customer-centric solutions during its 50th-anniversary celebrations.

Key Financial Metrics

1. Profitability: PBT surged by 24%, while operating revenue climbed by 20% to reach KES 18.9 billion. Net interest income exhibited substantial growth of 37%.
2. Loan Loss Provisions: Provisions rose from KES 4.6 billion in 2023 to KES 5.5 billion in 2024, reflecting the group’s diligence in maintaining the quality of its earnings assets portfolio.
3. Expenses: Operating expenses, excluding loan loss provisions, increased by 16%, largely due to investments in technology, talent acquisition, and branch expansions in Kenya and Rwanda.

On the balance sheet, total assets grew by 4% year-on-year to KES 568 billion, with customer deposits rising by 3% to KES 414 billion. Despite macroeconomic challenges, retail lending expanded, even as the overall loan portfolio declined by 2% to KES 281 billion.

Regional Growth and Diversification

Regional subsidiaries contributed 28% of the group’s PBT, driven by:

• Corporate and Institutional Banking: A 49% increase in performance.
• Retail Banking: A 28% boost in profitability.

Key highlights from regional subsidiaries include:

• Rwanda: A 55% PBT increase fueled by strong economic activity and notable loan and deposit growth in local currency terms.
• Tanzania: Operating profit rose by 73%, aided by improved asset quality and recoveries.
• Uganda: Total assets surpassed UGX 1 trillion, with loans growing by 24%.
• Mauritius: Despite currency translation challenges, local currency metrics showed steady performance.

Kenya’s Stellar Performance

I&M Bank Kenya recorded a 21% PBT growth, driven by:

• A 19% increase in revenue and a 17% rise in operating profit.
• The ‘Ni Sare’ initiative, which has facilitated free transactions between bank accounts and mobile money platforms such as M-Pesa and Airtel Money, resulting in a 36% year-on-year rise in the customer base.
• SME acquisitions surged by 270% following the launch of tailored solutions under the “Ni Sare Kabisa” initiative.

These developments have positioned I&M Bank as one of the fastest-growing financial institutions in the region, serving over 600,000 customers.

50th Anniversary and Future Outlook

Reflecting on the group’s golden jubilee, I&M Group PLC Regional CEO, Mr. Kihara Maina, expressed confidence in the ongoing iMara 3.0 strategy. “As we celebrate our 50th anniversary, our strong financial performance underscores our dedication to customer-centricity, operational efficiency, and digital transformation,” said Maina.

The group announced an interim dividend of KES 1.30 per share, payable in January 2025, as a token of appreciation for shareholder support.

I&M Bank Kenya CEO, Mr. Gul Khan, emphasized the institution’s focus on delivering financial solutions tailored to customer needs. “Our efforts to innovate and collaborate with ecosystem partners have resulted in over KES 20 billion in disbursed loans, positively impacting 2.5 million lives,” he said.

Digital Transformation and Sustainability

With 83% of customers regionally engaging through digital platforms, I&M Group remains committed to expanding accessibility and streamlining services. Investments in technology and branch expansion are key to sustaining the growth momentum.

As I&M Group celebrates five decades of excellence, its Q3 2024 performance serves as a testament to its strategic vision and resilience. From robust regional expansion to innovative customer solutions, the group is poised to maintain its leadership in the financial services sector across East Africa and beyond.