I&M Group profits up 33%

Orient Bank’s acquisition in Uganda expands its balance sheet by Shs753 billion

Kampala, Uganda | ISAAC KHISA | Regional lender, I&M Group PLC has recorded 33% growth in profit after tax to Shs134.6billion for 2021 half year period ended June.30.

Its net interest income grew by 28% to Shs 285.2 billion citing increased interest income from government securities. However, the group’s total non-funded income reduced by 6% to Shs124.9 billion during the same period under review.

The lender’s net non-performing loans, too, reduced by 8% compared to June 2020, to close at Shs240.3billion attributed to strengthened remedial actions in improving the loan book quality.

Customer deposits recorded a 10% growth from Shs8.09trillion in June 2020 to Shs8.87 trillion as at June 2021.

Similarly, its assets grew by 12% to Shs12.2 trillion up from Shs10.9 trillion in June 2020 bolstered by expansion into Uganda and increased private and public sector lending.

The acquisition of Orient Bank Ltd (OBL) in Uganda has expanded the group’s balance sheet by Shs753 billion.

I&M Group PLC Chairman, Daniel Ndonye, said the group’s focus on increased lending to both the private and the public sector was key in determining the bank’s growth at a time when economies world over were hard hit by the effect of the COVID-19 pandemic.

“This is on the back of strong capital and liquidity base at group and country levels reported all well above regulatory minimums. At group level, capital adequacy ratios closed at 21% at the same level as previous year, while liquidity ratio was 48% well above the statutory minimum of 20%,” he said.

The period under review saw the group finalise the acquisition of a 90% shareholding in Uganda’s Orient Bank Ltd as part of its broader regional expansion strategy to serve the needs of all customers at local and regional level, while promoting trade flows within the region.

“We will continue to focus on our customers across all the banking segments through a series of products and innovations that are tailored to enhance customers banking experience across all our subsidiaries;” he added

The group, through its wholly owned subsidiary, I&M Capital Limited, has rolled out a host of wealth management solutions expected to boost revenue diversification through provision of customized investment solutions, asset management, retirement income and financial planning for high network individuals.

In addition, the Rwandan and Tanzanian subsidiaries launched WhatsApp Banking, a key milestone in the group’s digital transformation journey to provide customers with freedom of modern banking.

“We will also continue to invest and offer cutting edge technologically driven solutions to our customers and expand opportunities to attract more investors,” Ndonye said.

The Group’s Executive Director, Sarit Raja Shah underscored significant investment made during the first half of 2021.

“Along with innovation of market driven solutions, we have also made significant investments in new systems across the Group in a bid to increase operational efficiencies and improve our customers’ banking experience.”

Further, the group progressed on its strategic effort to create long-term value for stakeholders, through continued investments in environmental, social and governance initiatives as a means to building resilience as well as to mitigate against emergent operational, cyber and credit risk.

During the period under review, the bank invested in a new risk management infrastructure for anti-money laundering, operational risk and fraud management, as a key step in protecting its customers from the threat of financial crime on the bank’s systems.

Through I&M Foundation, the group collaborated with like-minded organisations to drive its shared growth agenda in key thematic areas namely: education and skills development, environmental aspects.

Listed on the Nairobi Securities Exchange, I&M Group PLC, was incorporated in 1950, and has presence in Kenya, Rwanda, Tanzania, Mauritius and now Uganda.

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