I&M Bank financial results 2021
“We are recovering from the impacts of the pandemic, and this is a key factor in the positive sentiment being shown across the sector," says Mr Daniel Ndonye, Chairman, I&M Group PLC.
Home NEWS BUSINESS I&M Group Q1 2022 Net Profit Soars To Sh2.7 Billion

I&M Group Q1 2022 Net Profit Soars To Sh2.7 Billion

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I&M Group PLC has continued its growth momentum into the first quarter of 2022, with the Group reporting a 44% growth in profit after tax to Ksh2.7 billion compared to Ksh1.9 billion in the same period in 2021. During the period under review, the Group’s balance sheet and income improved on the backdrop of a solid capital base and strong liquidity.

 Balance sheet highlights

The Group’s balance sheet grew steadily with total assets growing by 18%. The loan portfolio grew by 13% to Ksh218.4 billion as at 31st March 2022 and Government securities were up by 21%. Net non-performing loans decreased by 31% year on year on the back of the expanded loan book and recoveries. Customer deposits closed at Ksh309.4 billion, an 18% increase year on year.

Income statement highlights

Net interest income for the period under review recorded a growth of 21% to close at Ksh5.2 billion, an increase from Ksh4.3 billion in March 2021 on account of improved earnings on loans and advances as well as from government securities.

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 Ksh348.5 million in Q1 2021 to Ksh612.8 million in Q1-2022. Loan loss provisions reduced by 37% compared to the previous year on the back of provision releases and recoveries.

“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,” said Mr Daniel Ndonye, Chairman, I&M Group PLC.

The 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 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.

I&M Bank Rwanda grew its digital services adoption with 75% of all customers initiating transactions in the Bank through their digital channels.

I&M Bank Tanzania recorded a profit after tax of Ksh71 million compared to Ksh62 million in March 2021 reflecting a 13% year on year growth. The performance was driven by a growth in net interest income and non-funded income by 27% and 14% respectively. The balance sheet grew by 9% to close at Ksh 28.7 billion.

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I&M Bank Uganda returned to profitability with a profit after tax of Kshs 405 million. This was aided by an increase in operating income which grew by 30%, reduced loan loss provisions and increase in recoveries. The balance sheet reported a 15% year on year growth to close at Ksh24.6 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%.

Outlook for 2022

The Group’s Executive Director, Mr. Sarit Raja Shah, is positive for the Bank’s performance in the rest of 2022, amidst the looming impact of the upcoming elections in Kenya as well as the ongoing geo-political tensions in Russia and Ukraine.

“We have had good momentum since the start of the calendar year and we remain optimistic that it shall continue despite both local and international geo-political factors. We remain confident that our rollout of our iMara 2.0 strategy will continue to bear fruit for us,” said Mr. Shah.

“Our key areas of emphasis will continue to be enhancement of our digital capabilities as well as building our capacity to defend ourselves against credit, cyber threats and other risks. Also, we shall continue to focus on strategic partnerships within the region with local, regional and global partners so as to enhance the banking experience for our customers, current and future,” he added.

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Written by
KALU MENGO -

Kalu Mengo is a Senior Reporter With Business Today. Email: [email protected]

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