This week’s feature: I&M Bank’s Profit Soars 24% to Hit Sh14.1B Milestone

I&M Group has announced a significant interim dividend of Sh2 billion, to be paid out on January 14, 2025, to shareholders registered by December 16, 2024. This decision follows an impressive 18 percent increase in net profit over the first nine months of the year.

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The bank’s third-quarter performance exceeded analyst expectations, with profit before tax reaching Ksh14.1 billion, representing a 24 percent increase from the previous year’s Ksh11.4 billion. Regional CEO Kihara Maina attributed this success to the strong implementation of their iMara 3.0 strategy, a three-year framework focused on market expansion, branch growth, and enhanced shareholder value.

The Group’s success was driven by strong performance across all markets, with regional operations contributing 28% of the total profit before tax. The corporate and institutional banking segment saw a remarkable 49% increase, while retail banking grew by 28%. I&M Bank Kenya specifically recorded a 21% increase in profit before tax, supported by growth in net interest income, along with a 19% year-on-year revenue increase and a 17% rise in operating profit.

Under the leadership of I&M Kenya CEO Gul Khan, the bank has seen significant improvements in brand awareness, which increased from 20% to 34%. The bank’s customer-centric approach has maintained a high Net Promoter Score of over 70% throughout the year. Their “Ni Sare” free transfer initiative to M-PESA and Airtel Money has contributed to a 36% year-on-year growth in customer base, while SME customer acquisition surged by 270% since December 2023.

The bank’s financial metrics show robust growth, with operating revenue increasing by 20% and operating profit rising by 24% to Ksh18.9 billion. Net Interest Income saw a substantial 37% increase. Despite these gains, loan loss provisions increased from Ksh4.6 billion in 2023 to Ksh5.5 billion in 2024.

The balance sheet reflects steady growth, with customer deposits rising by 3% to Ksh414 billion. While the overall loan portfolio showed a slight decline of 2% to Ksh281 billion, the Group’s Total Assets grew by 4% year-on-year, reaching Ksh568 billion. The bank now serves over 600,000 customers, positioning it as one of the fastest-growing banks in the region.

Here’s what it means for you:

1. Strong indication of future returns given the bank’s 24% profit growth and increased value of investment as the bank expands its market presence.
2. Better digital banking services due to ongoing technological investments
3. Special benefits for SME customers through the ‘Ni Sare Kabisa’ proposition for small businesses (Solo Biz)
4. Competitive banking products with a focus on customer satisfaction (70% NPS score)
5. Opportunity to join a rapidly growing bank that’s investing in customer-centric services.

Source; I&M Bank

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