I&M Bank posts 29% jump in Q3 profits
Regional lender I&M Group is upbeat about its 2023 performance outlook after the bank posted a 29 per cent jump in earnings. The bank recently announced key changes in its top leadership. CNBC Africa’s Aby Agina had an exclusive interview with the newly appointed Group CEO Kihara Maina.
Thu, 15 Dec 2022 10:34:03 GMT
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AI Generated Summary
- Q3 profits surge by 29%, underpinning a robust performance across all subsidiaries
- Focus on digital platforms and SME lending to drive future growth and enhance financial inclusion
- Emphasis on regional banking sector recovery, cross-border financial services, and opportunities for deeper financial inclusion in evolving markets
I&M Bank, a regional lender, is celebrating a 29% increase in earnings, showcasing a strong performance across all subsidiaries. In an exclusive interview with CNBC Africa, the newly appointed Group CEO, Kihara Maina, shared insights on the bank's outlook and strategies moving forward. The bank's pre-tax profit numbers have surged by 30% year-on-year, driven by robust growth in non-funded income and net interest income. With a focus on digital initiatives and segment expansion, particularly in the SME space, I&M Bank is optimistic about finishing the year on a high note.
Maina addressed concerns regarding non-performing loans (NPLs), attributing the elevated ratios to the prolonged impact of the pandemic. However, proactive measures, such as client engagement and relief support, have helped improve the NPL situation. Despite challenges, the bank remains committed to enhancing its performance in the market.
Reflecting on the regional banking sector, Maina highlighted the overall recovery and emphasized the group's investments in digital platforms to drive customer-centricity and financial inclusion. With a focus on SME and personal lending, coupled with a strong corporate foundation, I&M Bank foresees accelerated growth in the coming year.
Personal lending is poised for growth in 2023, despite inflationary pressures. The bank is leveraging digital platforms to expand its customer base and enhance credit assessment processes. By offering comprehensive customer value propositions and forging strategic partnerships, I&M Bank aims to capitalize on the existing credit gap in the market.
When discussing the evolving East African market, Maina underscored the region's push for economic integration and harmonization. Cross-border financial services, facilitated by initiatives like the East African payment system, are vital for driving economic growth and fostering regional cooperation. Maina expressed optimism about the opening up of markets such as Ethiopia and the Democratic Republic of Congo, highlighting the opportunities for deeper financial inclusion.
To deepen financial inclusion and promote cross-border financial services, Maina emphasized the need for harmonized policies and regulatory frameworks. By streamlining capital provisions, facilitating the movement of expertise, and reducing operational costs, financial institutions can enhance their presence across multiple markets. Engaging with regulators and advocating for conducive business environments will be instrumental in unlocking the region's full economic potential.
Overall, with a solid performance in Q3 and a bright outlook for 2023, I&M Bank is well-positioned to navigate challenges and capitalize on opportunities in the dynamic East African banking landscape.