I&M Bank Group has recorded a 24% growth in profit before tax for Quarter Three (Q3) of 2024.
I&M Group PLC reported a 24% increase in profit for Q3 2024, rising to Ksh 14.1 billion compared to Ksh 11.4 billion during the same period in 2023.
Commenting on the performance, Regional CEO Kihara Maina attributed the growth to the successful implementation of their iMara 3.0 strategy, describing the results as a strong start to the initiative.
In light of the impressive performance, the Board of Directors declared an interim dividend of Ksh 1.30 per share, scheduled for payout in January 2025.
Additionally, the Group's operating revenue grew by 20%, while operating profit saw a 24% rise to Ksh 18.9 billion.
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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.
I&M Bank Balance Sheet Performance
I&M Group's total assets increased by 4% year-on-year, reaching Ksh 568 billion. Customer deposits also rose by 3% to Ksh 414 billion, driven by innovative product offerings and continued digitization efforts.
While retail lending saw expansion, the overall loan portfolio declined by 2% to Ksh 281 billion. Net Non-Performing Loans (NPLs) stood at Ksh 14 billion, highlighting ongoing macroeconomic challenges.
Regional subsidiaries achieved robust balance sheet growth in their local currencies; however, their contributions were tempered by the strengthening of the Kenyan Shilling.
The Group reported strong operating revenues across all markets, with regional businesses contributing 28% of the Group's Profit Before Tax.
This growth was supported by a significant 49% increase in the corporate and institutional banking segment and a 28% rise in the retail banking segment, fueling substantial gains in operating income.
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.”
