I&M bank records 34pc net profit of Kes11.6Bn

By Monica MUEMA

The I&M Group PLC has recorded KES 11.6 billion in profit after tax for the full year ending December 2022; a 34% increase in profitability from KES 8.6 billion reported during a similar period in 2021.

It attributed this impressive growth to the continuing successful implementation of its iMara 2.0 strategy, which is now in its 3rd and final year, focusing on business growth, operational efficiencies, customer centricity, and digital transformation.

As a result of the strong performance, the Board has proposed a total dividend of KES 2.25 per share, a 50 % increase from last year, bringing the total dividend payout to KES 3.7 billion and a dividend yield of 13%.

Performance

During the period under review, the Group’s balance sheet and income metrics improved on the backdrop of strong liquidity and a solid capital base.

The Group’s balance sheet grew steadily with total assets growing to KES 436.6 billion up from KES 415.2 billion.

This was supported by a 13% growth in the loan book which increased to KES 239 billion. The new retail lines showed promising growth.

Customer deposits closed at KES 312.3 billion, a 5% increase year on year, largely driven by the growth in deposits from relaunched customer value propositions and enhanced usage of digital channels.

Net Interest Income for the period under review recorded a growth of 10% to close at KES 23 billion from KES 21 billion in the prior year, on account of strong growth in the loan portfolio and earnings from Government Securities.

Non-Interest Income increased by 46 % to KES 12.7 billion from KES 8.7 billion in the prior year. This was driven by growth in fees and commissions and foreign exchange income. Loan loss provisions increased by 25% compared to the previous year reflecting the continued pressure in performance for some sectors as well as loan book growth.

The Group’s operating expenses stood at KES 16.1 billion, an increase of 19% year on year on account of completed and new capital investments supporting automation and the digital strategy.

Commenting on the results, Mr. Daniel Ndonye, Chairman, I&M Group PLC, noted:

“The strong results posted in 2022 demonstrate that we are making good progress on our strategic plan to be Eastern Africa’s leading financial partner for growth. Looking ahead, we remain committed to driving sustainable growth, on delivering value to our customers and ultimately creating long-term value for our stakeholders.”