I&M Group PLC has reported a 25% growth in Profit Before Tax (PBT), amounting to Sh20.8 billion for the financial year ending December 31, 2024.
Regional Chief Executive Officer (CEO) Kihara Maina attributed the performance to increased operating income, strategic focus on Micro, Small, and Medium Enterprises (MSME) lending, and digital transformation.
Reflecting its strong performance, the Board of Directors has proposed a final dividend of Sh1.70 per share, bringing the total dividend to Sh3 per share, a 17% increase from Sh2.55 in the prior year.
Kenya remains the core driver of I&M Group’s success, with I&M Bank Kenya contributing 71% of the Group’s PBT. The Bank achieved a 16% year-on-year increase in revenue and a 17% rise in profits, alongside doubling its customer base within two years, half of whom were digitally onboarded. Digital transactions rose by 132%, reaffirming the Bank’s commitment to a tech-driven model.
“Our strategy of delivering digital products and services that are relevant to customers has yielded strong growth. Innovations like Ni Sare Kabisa free transfers and digital short-term loans have driven adoption, enhancing customer experience,” Gul Khan, I&M Bank Kenya CEO, said.
The Group’s total assets grew to Sh581 billion, with its MSME loan book more than doubling. Total income rose by 20 per cent to Sh51 billion, supported by a 31 per cent increase in Net Interest Income.
During the review period, customer deposits stood at Sh412 billion with strong growth in Current Accounts and Savings Accounts (CASA). Cross-border revenue increased by 57%, contributing to a 20% rise in total income to Sh51 billion. Net Interest Income surged by 31% while fees and commission income grew by 16%, reaching Sh7.9 billion, despite a marginal 3% reduction in non-interest income. Operating expenses, excluding loan loss provisions, increased by 16% year-on-year, closing at Sh23 billion, driven by branch expansion and strategic investments in staff and technology.
“Our focus on delivering the iMara Strategy has led to remarkable gains in MSME growth, digital banking, and customer expansion. We remain committed to driving financial inclusion and building an ecosystem that supports our customers’ businesses sustainably,” Kihara Maina, I&M Group Regional CEO. He also highlighted the adoption of a sustainability action plan, anchored on three pillars: Enabling Last Mile Financial Solutions, Enhancing Quality of Lives, and Building Sustainable Businesses.
Regionally, the Group’s subsidiaries contributed 29% to overall profitability, an increase from 24% the previous year. I&M Bank Rwanda recorded a 57% rise in PBT, while I&M Bank Tanzania tripled its PBT from Sh309 million to Sh1.06 billion. In Uganda, PBT grew by 78%, with total assets crossing the UGX 1 trillion mark. While Bank One in Mauritius posted a 5% increase in operating income, PBT declined by 27% due to higher loan loss provisions.
