-NAIROBI, KENYA
I&M Group PLC has recorded a Profit After Tax of KES 13.3 billion for the year ended 31st December 2023.
The regional financial services provider with operations in Kenya, Rwanda, Tanzania, Uganda and Mauritius, attributed the 15% growth in its profits toan increase in its operating income.
In the context of the Group’s strategic focus, the 2023 performance is a clear affirmation that the iMara2.0 strategy which came to an end in 2023 after a three-year period, has delivered remarkable year-on-year results.
The focus on delivering the iMara2.0 strategy over the past three yearshas seen Return on Equity grow from 10% in 2020 to 15% in 2023. Operating income grew by 20% from KES 36 billion in the previous year to KES 43 billion with 20% of this revenue coming from new strategic initiativesduring this phase.
KEY FINANCIAL PERFORMANCE HIGHLIGHTS
During the period under review, the Group’s balance sheet and income metrics improved with the liquidity and capital ratios remaining strong.
2023 BALANCE SHEET HIGHLIGHTS
•The Group’s balance sheet grew steadily with Total Assets increasing by KES 142 billion to KES 580 billion.
•The loan portfolio grew by 30% to KES 311 billion partly attributed to the extension of retail lending through the Bank’s digital platforms with a net non-performing loan ratio at 5% as of 31st December 2023.
•Customer deposits closed at KES 417 billion, recording a 33% increase year- on-year, largely attributed to growth in CASA (Current Accounts and Savings Accounts).
INCOME STATEMENT HIGHLIGHTS
•Growth in Operating Income was driven by a 25%increase in Net Interest Income on the back of rising interest rates and a 10% 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.
•The Group’s operating expenses, exclusive of loan loss provisions rose by 26% year-on-year to close at KES 20billion 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% to close at KES 1.2 billion.
Commenting on the results, Mr. Kihara Maina, I&M Group PLC, Regional CEO noted: “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.
“As we venture into the next chapter with our iMara 3.0 strategy, our primary aim is to sustain the growth through continued focus on enhancing our digital solutions platforms and building an ecosystem to support our customers’ businesses, as we seek to become Eastern Africa’s Leading Financial Partner for Growth.”
