I&M Group PLC has continued its growth momentum to a higher level the first quarter of 2022, with the Group reporting a 44% growth in Profit after tax to Kes 2.7 billion as compared to Kes 1.9 billion in the same period in 2021.
During the period the Group’s balance sheet grew steadily with total assets growing by 18%, and income metrics improved on the backdrop of a solid capital base as the loan portfolio grew by 13% to Kes. 218.4 billion as of 31st March 2022 and Government securities were up by 21%.
The achieved liquidity ensured the net non-performing loans decreased by 31% year on year on the back of the expanded loan book and recoveries. While this saw customer deposits closed at Kes. 309.4 billion, an 18% increase year on year.
The strong growth in non-interest income was driven by a 20% increase in fees and commissions and a 76% jump in foreign exchange trading income from Kes 348.5 million in Q1 2021 to Kes 612.8 million in Q1-2022.
“We are recovering from the impacts of the pandemic, and this is a key factor in the positive sentiment being shown across the sector. Though the calendar year 2021 posed its own challenges, our investments in digital infrastructure and customer value propositions have continued to put us on a positive trajectory,” Mr. Daniel Ndonye, Chairman, I&M Group PLC, noted.
In the Q1 I&M Bank Limited entered a partnership with global payments firm Mastercard to introduce new world-class debit and credit cards targeting corporate C-Suite professionals, young professionals, and high-net-worth clientele.
The cards offer a variety of lifestyle and travel benefits and the range consists of the Mastercard World Elite, Mastercard World Debit and Credit, Mastercard Platinum debit, Mastercard Corporate Standard, and Corporate World cards.
Group’s Rwandan subsidiary reported a 19% increase in profit after tax for the period in review. This increased the Bank’s return on equity (ROE) and return on asset (ROA) to 12.14% and 1.61% respectively. The Rwandan branch took the adoption of its digital services with 75% of all customers initiating transactions digital channels.
Bank branch in Tanzania recorded a profit after tax of KShs 71 million compared to Kshs 62 million in March 2021 reflecting a 13% year on year growth. A performance driven by a growth in net interest income and non-funded income by 27% and 14% respectively. This saw a balance sheet grew by 9% to close at Kshs 28.7 billion.
Uganda branch returned to profitability with a profit after tax of Kshs 405 million which was aided by an increase in operating income which grew by 30%, reduced loan loss provisions and an increase in recoveries. Saw a balance sheet report a 15% year-on-year growth to close at Kshs 24.6 billion.
The Group’s Joint venture, Bank One, Mauritius recorded a 44% profit after tax year on year growth driven by reduction in loan loss provisions, increase in recoveries and interest income growth by 4%.
Net interest income for the period under review recorded a growth of 21% to close at Kes. 5.2 billion, an increase from Kes. 4.3 billion in March 2021 on account of improved earnings on loans and advances as well as from government securities.
Mr. Ndonye stated that the continued investment in our group-wide digital transformation, as well as ongoing strategic partnerships, has continued to give value to our customers.
I&M Bank Kenya has added the recently launched unsecured lending solutions onto their digital platform I&M On the Go, making it more convenient and quicker for its customers to access unsecured loans through an automated platform.
The plan aims for enabling customers to conveniently acquire loan facilities from a minimum of Kes 50,000 up to a maximum of Kes 3 million, without providing any collateral or guarantor as security. The loans are payable over a period of up to 3 years.
The Bank has continued to invest in financial support programs geared toward financing and relieving working capital constraints for foreign and local businesses.
Bank celebrated the 5th year of its German Desk Programme, during which time financial facilities worth more than 16 million USD (over Kes. 1.8 billion) had been provided to clients, enabling investments into German/European technologies.
The Bank’s strong performance was driven by increased economic activity, with loans and deposits growing by 11% and 3% respectively, which led to growth in net interest income and net fee income.