I&M Group PLC delivers 34% growth in Profit after Tax for full year 2022 on the back of its regional growth strategy and accelerated digital adoption

Nairobi, 29 th March 2023: I&M Group PLC has recorded KES 11.6 billion in profit after
tax for the full year ending December 2022; a 34% increase in profitability from KES
8.6 billion reported during a similar period in 2021.
The Tier 1 Bank attributed this impressive growth to the continuing successful
implementation of its iMara 2.0 strategy, which is now in its 3 rd and final year, focusing
on business growth, operational efficiencies, customer centricity and digital
transformation.

As a result of the strong performance, the Board has proposed a total dividend of KES
2.25 per share, a 50 % increase from last year, bringing the total dividend payout to
KES 3.7 billion and a dividend yield of 13%.
Key Financial Performance
During the period under review, the Group's balance sheet and income metrics
improved on the backdrop of strong liquidity and a solid capital base.

Balance sheet highlights
 The Group’s balance sheet grew steadily with total assets growing to KES 436.6
billion up from KES 415.2 billion. This was supported by a 13% growth in the
loan book which increased to KES 239 billion. The new retail lines showed
promising growth.
 Customer deposits closed at KES 312.3 billion, a 5% increase year on year,
largely driven by the growth in deposits from relaunched customer value
propositions and enhanced usage of digital channels.

Classification: Public

Income statement highlights
 Net Interest Income for the period under review recorded a growth of 10% to
close at KES 23 billion from KES 21 billion in the prior year, on account of strong
growth in the loan portfolio and earnings from Government Securities.
 Non-Interest Income increased by 46 % to KES 12.7 billion from KES 8.7 billion
in the prior year. This was driven by growth in fees and commissions and foreign
exchange income. Loan loss provisions increased by 25% compared to the
previous year reflecting the continued pressure in performance for some sectors
as well as loan book growth. The Group’s operating expenses stood at KES 16.1
billion, an increase of 19% year on year on account of completed and new capital
investments supporting automation and the digital strategy.

Commenting on the results, Mr. Daniel Ndonye, Chairman, I&M Group PLC, noted:
“The strong results posted in 2022 demonstrate that we are making good progress on
our strategic plan to be Eastern Africa’s leading financial partner for growth. Looking
ahead, we remain committed to driving sustainable growth, on delivering value to our
customers and ultimately creating long-term value for our stakeholders."
I&M Bank Kenya
I&M Bank Kenya posted 39% increase in profit after tax for the period in review.
Additionally, the Bank saw significant growth in the adoption of its digital services, with
93% of customers initiating their transactions through digital channels.
As part of the Group’s strategic move into the MSME space in Kenya, the Bank has been
leveraging on strategic partnerships with anchor clients to enhance their business
efficiencies and improve access to working capital for their distributors.
The Bank made significant progress on its commitment to its Environmental, Social and
Governance (ESG) initiatives. The Bank saw a 42% uptake of its KES 6 billion
Renewable Energy Funding Scheme dubbed “The I&M Green Energy Fund” set aside to

Classification: Public

finance clean energy projects for customers to move to more environmentally friendly
energy solutions.

Regional Growth
The Group’s regional subsidiaries continued to grow, contributing 13% to the overall
banking profitability.
I&M Bank Rwanda reported a 22% increase in profit before tax for the period in
review. The Bank’s strong performance was driven by increased economic activity, with
loans and deposits growing by 4% and 10% respectively, which led to growth in Net
Interest Income and Net Fee Income.
The subsidiary grew its digital services adoption with 80% of all customers initiating
transactions in the Bank through their digital channels.
Additionally, I&M Bank Rwanda recently inaugurated its iconic green headquarters
building located in the heart of Kigali. The 3,540sqm building dubbed Nine on The
Avenue is part of the Bank’s commitment to support the Rwandan Government’s strong
dedication and commitment towards promoting and enabling sustainable urbanisation.
I&M Bank Tanzania recorded a loss before tax of KES 688.7 million compared to a
profit before tax of KES 492.4 million the previous year. The performance was driven by
an increase in loan loss provisions as per Bank Of Tanzania (BOT) regulatory
requirements. Total assets grew by 10% to close at KES 31.6 billion from 28.8 billion in
2021.

I&M Bank Tanzania grew its digital services adoption with 40% of all customers
initiating transactions in the Bank through their digital channels.
I&M Bank Uganda recorded a profit before tax of KES 691.6 million compared to a
loss before tax of KES 1.1 billion in 2021. This was aided by an increase in operating
income which grew by 9%, reduced loan loss provisions and recoveries during the year.

Classification: Public

The balance sheet reported a 16% year on year growth to close at KES 26.2 billion.
This was an impressive growth from the Uganda subsidiary which completed its first full
year as part of the I&M Group, with the team focused on integrating the subsidiary to
align to the Group’s strategy and values.
The Group’s Joint Venture in Mauritius, Bank One, recorded a profit after tax growth of
21% year on year driven by a reduction in loan loss provisions, an increase in
recoveries and Net Interest Income growth of 22%, supported by the improving
economic climate in Mauritius.
As part of growing and leveraging the synergies amongst its regional subsidiaries, I&M
Group relaunched BRISK, a service that enables its customers to transact seamlessly in
Kenya, Rwanda and Tanzania through a single account thus improving
interdependencies between the subsidiaries. Plans are underway to extend the product
to Uganda and Mauritius.
Outlook for 2023

The Group’s Executive Director, Mr. Sarit Raja-Shah is positive about the Group’s
performance in 2023 on the back of its robust iMara 2.0 strategy.
“Our key areas of emphasis will continue to be enhancement of service delivery for our
customers as well as building a resilient profitable business. We believe we have a
sound strategy that will drive the business to the next level of growth and
development,” said Mr. Shah.
“Looking ahead, we will continue to support our customers through this uncertain
economic period, while investing in a simpler and better banking experience. Our iMara
2.0 strategy has equipped us to deliver sustainable growth in all our business segments
and returns to shareholders in the years ahead,” he added.