I&M Bank Records Ksh2.7 billion Profit

I&M Bank Group has recorded a 24% growth in profit before tax for Quarter Three (Q3) of 2024.

The profit increased by 24% to Ksh 14.1 billion in Q3 of 2024, up from Ksh 11.4 billion over the same period in 2023.

I&M Group PLC’s Regional CEO, Kihara Maina, while commenting on the results, stated that the 24% increase in profitability are markers of a strong start of their iMara 3.0 strategy.

He added that based on the strong performance, the Board of Directors announced an interim dividend of Ksh 1.30 per share which will be paid out in January 2025.

Meanwhile, the operating revenue grew by 20%, while the operating profit increased by 24% to Ksh 18.9 billion. 

Their net Interest income rose significantly by 37%. 

Loan loss provisions increased from Ksh 4.6 billion in 2023 to Ksh 5.5 billion in 2024, reflecting the Group’s consistent attention to quality of the earnings asset’s portfolio.  

Operating expenses, excluding loan loss provisions, rose by 16%, driven by investments in technology, talent, and branch expansion in Kenya and Rwanda.

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I&M Bank Balance Sheet Performance

• The Group’s Total Assets grew by 4% year-on-year to close at Ksh 568 billion. 

• Customer deposits increased by 3% to Ksh 414 billion, supported by innovative product offerings and digitisation efforts. 

• Retail lending expanded, though the overall loan portfolio declined by 2% to KES 281 billion. 

• Net Non-Performing Loans (NPLs) stood at Ksh 14 billion, reflecting macroeconomic challenges. 

• Regional subsidiaries demonstrated strong balance sheet growth in their local currencies, however, their performance was impacted by the appreciation of the Kenyan Shilling. 

I&M Group achieved strong operating revenues across all markets, with regional businesses contributing 28% of the Group’s Profit before Tax.

This growth was fueled by substantial gains in operating income, driven by a 49% increase in the corporate and institutional banking segment and a 28% increase in the retail banking segment.

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I&M Bank Kenya Financial Results

At the same time, I&M Bank Kenya recorded a 21% increase in Profit Before Tax, driven by growth in Net Interest Income.

The Bank also achieved a growth of 19% year-on-year in revenue and a 17% increase in operating profit.

I&M Bank’s initiative to make banking more accessible through the ‘Ni Sare’ free bank to M-PESA and Airtel Money proposition has led to a 36% increase year-on-year in its customer base.

Additionally, SME customer acquisition in Kenya surged by 270% since December 2023, following the extension of the Ni Sare Kabisa proposition to small businesses (Solo Biz) in April 2024.  

This growth positions I&M Bank as one of the fastest-growing banks by customer numbers in the region, with over 600,000 customers now being served.

Speaking during the release of the Q3 Financial Results, I&M Bank Kenya CEO, Gul Khan stated that they are delighted to report double-digit growth in both revenue and profits.

“Our commitment to providing relevant financial solutions for Kenyans and investing in a distinctly Kenyan brand has led to a 14% increase in brand awareness from 20% to 34%,” he said.

More importantly, our growth has been achieved while maintaining a strong focus on customer centricity, as reflected in our consistent NPS (Net Promoter Score) of over 70% throughout the year.”  

He added, “Through collaborations with our ecosystem partners, the Bank has disbursed approximately over Ksh 20 billion ($160 million) and positively impacted over 2.5 million lives.”

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