I&M Group PLC recorded a 29 per cent growth as customers opt for mobile transaction

I&M Group PLC recorded a total operating cost of Ksh9.6 billion for the first quarter of 2023, a 29 per cent growth as 93 per cent of its Kenyan customers initiated their transactions through phones.

The lender attributes the growth on the improved balance sheet and the income metrics on the improved liquidity and a solid capital base. The Bank recently waived bank to mobile wallet charges amidst the tough economic environment.

The extension of retail lending through the bank’s digital platforms contributed to the loan portfolio’s 18 per cent growth to Ksh257. 7 billion.

Customers showed their increased trust in the bank as they increased their deposits at Ksh324.7 billion which is a 5 per cent increase year on year. However, the mood was somber when it came to the group’s profitability as it was flat due to the growth in both expenses and provisions.

The group continues to successfully execute its iMara 2.0 strategy which is now in its final years focusing on business growth, operational efficiencies, customer centricity and digital transformation.

Mr. Sarit Raja Shah, Group Executive Director of I&M Group PLC cited rising inflation and cost of doing business as the top challenges in the first quarter of the year.

”Our continued investments in the group-wide iMara 2.0 strategy that focuses on customer centricity and digital transformation as well as the on-going strategic partnerships, have continued to give value to our customers and stakeholders,” Shah said.

Regionally, I&M Bank Kenya posted a 16 per cent increase in profit before tax for the period under review, driven by a 28 per cent growth in the operating income. The bank’s CEO Gul Khan championed the “Ni Sare Kabisa” and “The unsecured Personal Loan of up to Ksh10 million” campaigns as their commitments to solving customer problems.

“We take pride in our customer-centricity evidenced by our Net Promoter Score closing at 54 per cent against the banking sector average of 38 per cent in Kenya,” Khan said.

For the period ending 31 March 2023, I&M Rwanda reported an 18 per cent increase in profit before tax with loans and deposits growing by 11 per cent and 8 per cent respectively.

In Tanzania, I&M recorded a profit before tax of Ksh22 million on the back of strong growth in total assets of 22 per cent, with loans and deposits growing by 19 per cent and 26 per cent respectively.  I&M Uganda posted strong growth in operating income of 31 per cent

For the period under review, 77 per cent of I&M Group customers across the region were digitally active. Non-branch transactions also increased to 76 per cent.