I&M group has reported a pre-tax profit of KES13.3 billion (nearly 260bn/-) for the year ended 31st December 2023, driven by double digit growths of profitability in its subsidiaries across the Eastern African region.

A statement issued by the group on Monday said the regional operations in Kenya, Rwanda, Tanzania, Uganda and Mauritius, attributed the 15 percent growth in its profits to an increase in its operating income and 24 percent to the overall profitability. 

“For the period ending 31st December 2023, 78 percent of I&M Group customers across the region were digitally active. Non-branch transactions also increased to 81 percent,” the statement.

In Tanzania, the Bank recorded a pre-tax profit of KES309 million up from a loss of KES689 million in 2022 on the back of strong growth in total assets of 47 percent, with loans and deposits growing by 45 percent and 55 percent respectively. 

I&M Bank in Rwanda also reported a 24 percent increase in pre-tax profit for the period under review. 

The Bank’s strong performance was driven by increased economic activity in the region, with loans and deposits growing by 48 percent and 39 percent respectively, which led to growth in Net Interest Income and Non-Funded Income.

I&M Bank Uganda posted strong growth in operating income of 41 percent. Total assets reported a 44 percent year on year growth to close at KES 38 billion, with growth in the loans and deposits book at 53 percent and 38 percent respectively.  

However, I&M Bank Kenya posted an operating income growth of 14 percent year on year, 7 percent increase in operating profit and a 1 percent drop in pre-tax profit, due to higher loan loss provisions. 

The statement further said, the group’s joint venture investment in Mauritius, Bank One, recorded a growth of 80 percent in pre-tax profit year on year, driven by the growth of the loan portfolio as well as higher non-interest income.

“In the context of the Group’s strategic focus, the 2023 performance is a clear affirmation that the iMara2.0 strategy which came to an end in 2023 after a three-year period, has delivered remarkable year-on-year results,” the statement said. 

“The focus on delivering the iMara2.0 strategy over the past three years has seen Return on Equity grow from 10 percent in 2020 to 15 percent in 2023. Operating income grew by 20 percent from KES 36 billion in the previous year to KES 43 billion with 20 percent of this revenue coming from new strategic initiatives during this phase.”

Commenting on the results, Kihara Maina, I&M Group PLC, Regional CEO noted: "Building upon the success of our recently concluded iMara 2.0 strategy, we have witnessed remarkable achievements in both profitability and growth in our various business units. As we venture into the next chapter with our iMara 3.0 strategy, our primary aim is to sustain the growth through continued focus on enhancing our digital solutions platforms and building an ecosystem to support our customers’ businesses, as we seek to become Eastern Africa’s Leading Financial Partner for Growth."

The Group’s balance sheet grew steadily with total assets increasing by KES142 billion to KES580 billion.