I&M Group PLC, a prominent player in Kenya’s financial sector, has unveiled robust financial results for the nine months ending September 2023. Notably, profit after tax escalated by 13.8%, surging from Sh7.2 billion during the corresponding period last year to an admirable Sh8.2 billion.

This success is attributed to the bank’s strategic focus on revenue diversification, resulting in a significant increase in operating income. The bank’s operating income grew substantially by 19%, culminating at Sh29.9 billion, marking an impressive improvement from its standing of Sh25 billion in 2022. The remarkable growth can be attributed to two key factors: an 18% rise in Net Interest Income and a notable surge of 21% in Non-Interest Income.

The regional businesses of I&M Group PLC played a pivotal role, contributing 29% to the total operating income. Evidently, this diversification strategy has borne fruit, bolstering the bank’s overarching financial health.

Despite its positive trajectory, the Group demonstrated maintained prudence in managing asset quality. This is evident through an increased loan loss provision that closed at Sh4.6 billion, a rise from the previous amount of Sh3.6 billion. Exclusive of provisions for loan losses, operating expenses also saw substantial growth with a 29% increase year-on-year, amounting to Sh14.6 billion. The bank attributes this rise to its ongoing investments in technology and human capital across all jurisdictions. It continues actively expanding and upgrading these crucial areas for operational excellence, a testament not only to their commitment but also their foresight towards continual improvement within the business landscape itself.

Sarit Raja-Shah, the Group’s Executive Director, expressed satisfaction with the results. He underlined the bank’s resilient response to operational challenges, emphasizing positive growth across all businesses and geographies. He underscored that this expansion reinforces a commitment from the bank – not only supporting recovery in countries it operates but ensuring their complete rehabilitation.

Raja-Shah highlighted the effective execution of the iMara strategy, now in its final year, asserting that the success hinges on it. The said approach zeroes down to business expansion, operational streamlining, an emphasis towards customer-centricity, and digital transformation woven into its fabric.

The subsidiary of I&M Bank in Kenya showcased robust performance, reporting a year-on-year growth in operating income of 13%, increased operating profit by 6%, and a 1% rise in pre-tax profits. The bank ascribes this success to digital service adoption, with over 90% of customers initiating transactions through these channels.

The CEO of I&M Bank Kenya, Gul Khan, underlined the bank’s unwavering commitment to offer pertinent solutions for all Kenyans, sharpened in response to navigating this challenging macroeconomic environment. He emphasized not only how quickly and capably his institution addresses customer demands but also its ability to decentralize services, thus bringing them within an arm’s reach of their valuable clientele.

Exhibiting steady growth, the Group’s balance sheet saw a 27% increase in asset value, reaching Sh544 billion. Concurrently, its loan portfolio expanded by 24% to Sh287 billion. Notably reflecting an impressive year-on-year increase of 31%, customer deposits closed at Sh402 billion.