I&M Group, a leading financial services group in East Africa, has reported impressive financial performance for the third quarter of 2024. The Group’s strategic focus on digital transformation, customer-centricity, and risk management has enabled it to navigate challenging economic conditions and deliver strong results.

Key Highlights:

Profit Before Tax: The Group’s Profit Before Tax surged by 24% to KES 14.1 billion, driven by strong operating performance.
Operating Revenue: Operating revenue increased by 20%, reflecting the Group’s diversified revenue streams and sustained growth across its business segments.
Net Interest Income: This key metric witnessed a significant 37% growth, indicating improved lending and deposit mobilisation.
Loan Loss Provisions: While loan loss provisions increased to KES 5.5 billion, the Group remains vigilant in managing credit quality.
Operating Expenses: The Group invested in technology, talent, and branch expansion, leading to a 16% increase in operating expenses, excluding loan loss provisions.

A Strong Balance Sheet

I&M Group’s balance sheet remains strong, with Total Assets growing by 4% to KES 568 billion. Customer deposits increased by 3% to KES 414 billion, reflecting the Group’s commitment to customer satisfaction and innovative product offerings.

Regional Performance

I&M Group’s regional subsidiaries continued to demonstrate strong growth, contributing 28% to the Group’s Profit Before Tax. However, the appreciation of the Kenyan Shilling impacted the performance of these subsidiaries.

The bank recorded a 21% increase in Profit Before Tax, driven by growth in Net Interest Income.

Key Highlights:

Profitability Surge: A 21% year-on-year increase in Profit Before Tax.
Revenue Growth: A 19% year-on-year increase in revenue.
Operational Efficiency: A 17% year-on-year increase in operating profit.
Customer Growth: A 36% year-on-year increase in customer base, fueled by the successful “Ni Sare” initiative.
SME Focus: A 270% increase in SME customer acquisition since April 2024, thanks to the extension of the “Ni Sare Kabisa” proposition.

I&M Group PLC’s Regional CEO, Mr. Kihara Maina, expressed satisfaction with the results, stating, “The 24% increase in profitability is a testament to the strong start of our iMara 3.0 strategy. We are committed to customer-centricity, operational efficiency, and digital transformation to sustain profitability in the future.”

The “Ni Sare” Initiative: A Game-Changer

I&M Bank Kenya’s “Ni Sare” initiative has been instrumental in driving customer growth and financial inclusion. By offering free banking services to M-PESA and Airtel Money users, the bank has lowered barriers to entry and attracted a significant number of new customers.

The recent extension of the “Ni Sare Kabisa” proposition to small businesses has further accelerated growth, empowering SMEs with access to affordable and convenient banking solutions.

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A Bright Future Ahead

As I&M Bank Kenya celebrates its 50th anniversary, the bank remains committed to delivering innovative financial solutions and empowering its customers.

With a strong focus on digital transformation and customer-centricity, the bank is well-positioned to capitalize on future opportunities and maintain its leadership position in the Kenyan market.

I&M Bank Kenya, a leading financial institution in the region, has marked a significant milestone: its 50th anniversary. Over the past five decades, the bank has consistently demonstrated its commitment to providing innovative financial solutions and empowering individuals and businesses.

A Year of Remarkable Growth

In its recent Q3 financial results, I&M Bank Kenya reported impressive double-digit growth in both revenue and profits. This robust performance is a testament to the bank’s strategic focus on customer-centricity and digital innovation.

Key Highlights from Q3:

Customer Growth: The bank has successfully onboarded over 600,000 customers, positioning itself as one of the fastest-growing banks in the region.
Enhanced Brand Awareness: Through strategic branding initiatives and a focus on customer experience, I&M Bank has achieved a 14% increase in brand awareness, now reaching 34%.
Strong Customer Loyalty: The bank’s consistent Net Promoter Score (NPS) of over 70% underscores its commitment to customer satisfaction.
Financial Inclusion: I&M Bank has disbursed over KES 20 billion ($160 million) in loans, positively impacting the lives of over 2.5 million people.

A Future-Focused Approach

I&M Bank Kenya is positioned to continue its growth trajectory by:

Digital Innovation: Embracing cutting-edge technologies to deliver seamless banking experiences.
Customer Centricity: Prioritizing customer needs and preferences to build lasting relationships.
Strategic Partnerships: Collaborating with key stakeholders to expand its reach and impact.
Sustainable Finance: Promoting environmentally and socially responsible practices.

Key Highlights from the Regional Performance:

I&M Rwanda: A Tale of Significant Growth

Impressive Financial Performance: I&M Bank Rwanda has reported a remarkable 32% increase in operating income and a substantial 55% growth in Profit Before Tax.
Strong Loan and Deposit Growth: The bank’s loan book expanded by 1% and deposits grew by 20%. In local currency terms, these figures are even more impressive, with a 27% increase in loans and a 52% surge in deposits.
Focus on Digital Banking: The bank’s commitment to digital innovation has resulted in a significant increase in digital customer engagement, with 83% of customers now actively using digital channels.

I&M Tanzania: Navigating Challenges and Securing Gains

Strong Profitability: Despite economic headwinds, I&M Bank Tanzania achieved a 34% increase in operating income and a 73% surge in operating profit, driven by asset quality improvements and cost control measures.
Steady Growth in Local Currency: While currency translation effects led to a decline in Total Assets and Loans & Advances in Kenyan Shillings, the bank’s performance in local currency remained strong, with an 11% increase in loans and a 19% rise in deposits.

I&M Bank Uganda: A Symbol of Operational Success

I&M Bank Uganda has shown significant progress in its operations, recording a 21% growth in operating income and a 37% increase in operating profit.

This impressive performance underscores the bank’s effective strategies and strong presence in the Ugandan market. The bank’s total assets crossed the UGX 1 trillion mark, reflecting a solid 6% year-on-year growth, closing at KES 37 billion.

In terms of business growth, I&M Bank Uganda saw an impressive 24% increase in its loan book and a 7% growth in customer deposits, further solidifying its standing in the Ugandan banking sector.

This growth is a testament to the bank’s robust operational momentum and successful market penetration, positioning it as a reliable financial partner for individuals and businesses alike in the region.

These results not only highlight I&M Uganda’s strong market performance but also its ability to meet the evolving financial needs of its customers, contributing to the wider economic development of the country.

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Bank One Mauritius: Navigating Challenges with Resilience

I&M Group’s joint venture investment in Bank One in Mauritius also demonstrated notable performance, despite some challenges. The bank saw a 16% year-on-year increase in operating income, which highlights the institution’s resilience and adaptability in a competitive banking environment.

However, there was a 7% decline in total assets and a 15% drop in net loans & advances when converted to KES terms. Despite this, the bank recorded a 10% growth in total assets and a 1% increase in net loans and advances in local currency, illustrating the underlying strength of its operations in Mauritius.

Furthermore, customer deposits declined by 7% in KES terms, but there was a 11% increase in local currency, which is a positive indicator of the bank’s ability to attract and retain customer funds in the face of market pressures.

Bank One’s performance reflects its strong adaptability to local economic conditions, demonstrating that even in challenging market environments, the bank continues to provide reliable services and foster customer loyalty.

Outlook

Despite the challenging macroeconomic environment, I&M Group remains optimistic about its future prospects. The Group’s strong financial performance, coupled with its strategic focus on digital transformation and customer-centricity, positions it well to capitalise on emerging opportunities and deliver sustainable value to its shareholders.