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I&M Profit Jumps 22% as Regional Bets and Diversification Pay Off
I&M Group PLC has posted a 22% rise in full-year Profit Before Tax to KSh 24.2 billion, underlining the growing payoff from its regional expansion and income diversification strategy.
The results signal a bank gaining momentum—not just from lending, but from a broader mix of revenue streams and a steadily expanding footprint across East Africa.
Profit After Tax rose 24% to KSh 19.8 billion, while total revenue climbed 19% to KSh 60.3 billion. The growth was balanced, with both funded and non-funded income contributing meaningfully.
Diversification Starts to Deliver
A key shift is becoming clearer: I&M is no longer relying heavily on interest income alone.
Net interest income grew by 16% to KSh 46 billion. However, non-interest income rose faster, jumping 31% to KSh 14.4 billion. This reflects deliberate efforts to build alternative revenue lines.
Wealth management and bancassurance are now emerging as strong growth engines. Assets under management surged to KSh 99 billion, pointing to rising demand for investment products among customers.
At the same time, insurance-related income expanded, supported by cross-selling and a broader client base.
Growth, But With Caution
The balance sheet expanded, but at a measured pace.
Total assets rose 15% to KSh 668.9 billion, while customer deposits increased 17% to KSh 484 billion. This provided a stable funding base.
Loans and advances grew by 7% to KSh 306 billion. The slower pace suggests a more cautious lending approach, as banks navigate a tight economic environment and rising credit risks.
I&M Profit Jumps 22% as Regional Bets and Diversification Pay Off
Regional Strategy Gains Ground
Importantly, regional subsidiaries are no longer peripheral—they are now central to growth.
They contributed 24% of the Group’s overall performance, highlighting the success of I&M’s expansion beyond Kenya.
Uganda led the pack with a 48% jump in Profit Before Tax, while Rwanda and Tanzania also posted strong gains. This diversification is helping cushion the Group from single-market shocks.
Digital Becomes Core to Growth
I&M is also doubling down on digital.
The rollout of I&M FX Direct and upgrades to its On-The-Go platform have pushed digital usage to 98% of customers. This signals a shift toward a more efficient, tech-driven operating model.
At the same time, the bank continues to target high-impact segments such as MSMEs, agribusiness, and retail banking—areas closely tied to regional economic growth.
Beyond Banking: Building a Purpose-Led Brand
Alongside financial performance, the Group is strengthening its social impact footprint.
It invested over KSh 400 million in community initiatives during the year. Notably, it planted more than one million trees, with an 85% survival rate.
The bank also supported education and entrepreneurship, reaching thousands of young people and women across its markets.
This signals a growing emphasis on sustainability and inclusive growth—areas that are increasingly shaping investor and customer expectations.
Momentum With Discipline
Looking ahead, I&M appears focused on sustaining momentum while maintaining discipline.
Its strategy is clear: expand regionally, deepen digital capabilities, and grow non-interest income streams.
With a stronger balance sheet and improving income mix, the Group is positioning itself as a more resilient and competitive player in East Africa’s banking sector.
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