NAIROBI, Kenya, March 29 – I&M Group has recorded a Sh11.6billion net profit for the full year ended December 31 2022, a 34 per cent growth from the Sh8.6 billion posted in 2021.
The lender attributed the improved performance to the continuing successful implementation of its iMara strategy which focuses on business growth, operational efficiencies, and digital transformation.
As a result of the improved performance, the Board has proposed a total dividend of Sh2.25 per share, a 50 per cent increase from last year, this brings the total dividend payout to Sh3.7billion.
During the period under review, the Group’s balance sheet and income metrics improved on the backdrop of strong liquidity and a solid capital base.
The Group’s balance sheet grew steadily with total assets growing to Sh436.6 billion up from Sh415.2 billion.
This was supported by a 13 per cent growth in the loan book which increased to Sh239 billion.
Customer deposits closed at Sh312.3 billion, a 5 per cent increase year on year, largely driven by the growth in deposits from relaunched customer value propositions and enhanced usage of digital channels.
Net interest income for the period under review recorded a growth of 10 per cent to close at Sh23 billion from Sh21 billion in the prior year, on account of strong growth in the loan portfolio and earnings from Government Securities.
Non-interest income increased by 46 per cent to Sh12.7 billion from Sh8.7 billion in the prior year.
This was driven by growth in fees and commissions and foreign exchange income.
Loan loss provisions increased by 25 per cent compared to the previous year reflecting the continued pressure in performance for some sectors as well as loan book growth.
The Group’s operating expenses stood at Sh16.1 billion, an increase of 19 per cent year on year on account of completed and new capital investments supporting automation and the digital strategy.
“The strong results posted in 2022 demonstrate that we are making good progress on our strategic plan to be Eastern Africa’s leading financial partner for growth. Looking ahead, we remain committed to driving sustainable growth, on delivering value to our customers and ultimately creating long-term value for our stakeholders,” said Daniel Ndonye, Chairman, I&M Group PLC.
The group’s regional subsidiaries continued to grow, contributing 13 per cent to the overall banking profitability.
I&M Bank Rwanda reported a 22 per cent increase in profit before tax for the period in review.
The Bank’s strong performance was driven by increased economic activity, with loans and deposits growing by 4 and 10 per cent respectively, which led to growth in Net Interest Income and Net Fee Income.
I&M Bank Tanzania recorded a loss before tax of Sh688.7 million compared to a profit before tax of Sh492.4 million the previous year.
The performance was driven by an increase in loan loss provisions as per Bank Of Tanzania (BOT) regulatory requirements.
Total assets grew by 10 per cent to close at Sh31.6 billion from Sh28.8 billion in 2021.
I&M Bank Uganda recorded a profit before tax of Sh691.6 million compared to a loss before tax of Sh1.1 billion in 2021.
This was aided by an increase in operating income which grew by 9 per cent, reduced loan loss provisions and recoveries during the year.
