I&M Group posts 24% profit before tax growth in H1’24

I&M Group PLC has reported a notable 24 per cent increase in profit before tax for the period ending June 30, 2024, reaching KES8.7 billion. The bank's strategic emphasis on strengthening its corporate and retail segments has driven significant growth across its markets. Kihara Maina, Regional CEO of I&M Bank Group PLC, highlighted the performance highlights and regional developments in a recent interview with CNBC Africa's Tabitha Muthoni. During the interview, Maina expressed satisfaction with the bank's performance in the first half of the year. Despite a challenging economic environment across its markets, the bank achieved a 24 per cent year-on-year increase in profit before tax, with a steady growth rate of 12 per cent. Maina attributed this success to a 5 per cent growth in the loan portfolio and a remarkable 15 per cent increase in deposits. He credited the focus on product innovation and digitization for driving this growth and expressed optimism for a strong second half of the year. Maina highlighted the alignment of their strategies with long-term growth objectives, particularly the implementation of the EMARA strategy. This strategic framework focuses on ecosystem partnerships, strengthening corporate capabilities, and expanding into new markets such as retail and SME spaces. Maina cited successful initiatives like the Nisare Kabisa campaign in Kenya, which led to a 98 per cent increase in customer acquisitions, and the digital lending product that generated high demand. The boost in customer deposits by 18 per cent was attributed to digitization efforts that streamlined customer acquisition and enhanced transactional banking services. Maina emphasized the importance of seamless money transfer capabilities and simplified account opening processes through mobile platforms like IMAP and OTG. Discussing asset quality management, Maina highlighted the bank's proactive approach to managing non-performing loans. By offering support and restructuring options to clients facing financial difficulties, the bank successfully reduced non-performing loans to 15 billion Kenyan shillings. Maina outlined the continued measures to maintain improved asset quality in the future. Regarding market sustainability and growth, Maina emphasized the focus on de-risking lending in SME and real estate sectors. Partnerships with development finance institutions like FMO and SEDA have facilitated the expansion into new market segments. Maina highlighted the significance of data-driven decision-making and credit scoring engines in expanding market share and offering affordable lending solutions. Despite a recent sovereign downgrade affecting several banks, Maina reassured stakeholders of the bank's soundness, strong capitalization, and clear strategy. He expressed confidence in future growth prospects and reiterated the resilience of the bank amidst external challenges. Celebrating their 50th anniversary, I&M Bank reflected on its legacy and growth trajectory across African markets. Maina acknowledged the visionary leadership of founder and chairman emeritus, Mr. Suresh Rajasah, and emphasized the bank's continued commitment to supporting communities through initiatives like the I&M Foundation. The bank's focus on environmental conservation, education, economic empowerment, and philanthropy underscores its dedication to creating shared value. As part of their sustainability efforts, I&M Bank has invested in initiatives like the restoration of the Gong Road Forest and signed up for the UN Global Compact to drive environmental and social responsibility. The bank's holistic approach to community engagement and sustainability aligns with its long-term vision of contributing to positive societal impact and fostering inclusive growth.