I&M Group Posts Sh 16.6Bn Profit, Declares Sh 1.70 Final Dividend

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I&M Group Plc has reported a 24.8% rise in profit after tax to Sh 16.6 billion for the year 2024. The bank has also declared a final dividend of Sh 1.70 per share, bringing the total payout for the year to Sh 3 per share.

The lender’s operating income surged by 20% to Sh 51.2 billion, driven by higher interest earnings, which totaled Sh 68.1 billion. Total interest income stood at Sh 68.1 billion, while total interest expense was recorded at Sh 30.5 billion. Operating expenses also saw an increase, rising by 15.7% to Sh 23.5 billion. The cost-to-income ratio stood at 45.9%.

Despite the strong profitability, the bank’s loan book shrank, with net customer loans and advances dropping to Sh 287.1 billion from Sh 311.3 billion in 2023. Customer deposits also edged lower to Sh 412.2 billion from Sh 416.7 billion. On the asset front, I&M Group recorded a slight increase, with total assets growing to Sh 581.3 billion from Sh 579.7 billion the previous year.

Commenting on the results, Mr. Kihara Maina, I&M Group PLC Regional CEO, stated: “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.”

“We also reengineered the Strategy to focus on sustainability, which led to the adoption of a Groupwide sustainability action plan resting on three pillars: Enabling Last Mile Financial Solutions, Enhancing Quality of Lives, and Building Sustainable Businesses.” he added.

The bank’s non-performing loans remained stable at Sh 35.5 billion, compared to Sh 35.4 billion in 2023.

Read: I&M Group Appoints David Thuo Ngata as Chief Finance Officer, Announces Departure of Dr. Nyambura Koigi

I&M Bank Rwanda experienced a remarkable 57% increase in Profit Before Tax, driven by heightened economic activity and robust income growth. The bank’s expansion was fueled by a strong customer acquisition strategy and a growing balance sheet, reinforcing its market position.

I&M Bank Tanzania recorded significant financial growth, with its Profit Before Tax reaching KES 1.06 billion, a substantial rise from KES 309 million in 2023. This impressive performance was primarily attributed to asset growth and successful loan recoveries, reflecting the bank’s strong financial management.

I&M Bank Uganda also posted outstanding results, achieving a 78% increase in Profit Before Tax. The bank’s total assets grew by 21% in local currency, surpassing the UGX 1 trillion milestone. This expansion highlights the bank’s strategic approach to strengthening its financial position and market presence.

Meanwhile, Bank One in Mauritius, a joint venture with the Ciel Group, saw its operating income grow by 5%, driven by a well-managed balance sheet. However, despite this growth, Profit Before Tax declined by 27% due to higher loan loss provisions, indicating a cautious approach to credit risk management.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.