I&M Group PLC has announced a solid start to the year, posting a 16% increase in Profit Before Tax (PBT) for the first quarter of 2025. The Group recorded PBT of KES 5.9 billion, up from KES 5.1 billion in Q1 2024. The performance reflects sustained momentum following a robust full-year 2024 and highlights the success of the Group’s regional growth strategy and digital transformation efforts.

Regional Diversification Powers Growth

A key driver of I&M Group’s growth has been its expanding regional footprint. Regional subsidiaries contributed 26% of total Group PBT, up from 24% in the same period last year. “We are seeing strong momentum across our subsidiary markets,” said Kihara Maina, Regional CEO at I&M Group. “Our regional diversification strategy is clearly delivering value.”

Notably:

• I&M Bank Uganda delivered a 138% increase in PBT, with asset growth from UGX 988 billion to UGX 1.1 trillion.

• I&M Bank Tanzania more than doubled its PBT to KES 324 million.

• I&M Bank Rwanda posted a 14% growth in PBT in local currency.

• Bank One (Mauritius) achieved a 13% rise in PBT, driven by strong non-funded income and prudent cost control.

Strong Financial Position

The Group’s balance sheet showed steady growth:

• Total assets rose by 7% year-on-year, reaching KES 568 billion.

• Customer deposits increased by 6% to KES 407 billion, boosted by growth in current, savings, and term deposits.

• Loan book expanded modestly by 1% to KES 294 billion.

• Net Non-Performing Loans (NPLs) declined by 11% to KES 13 billion, reflecting strengthened credit risk management.

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Income and Investment Highlights

On the income side:

• Operating income rose 12%, driven by a matching 12% increase in Net Interest Income.

• Operating expenses (excluding provisions) also grew by 12%, reflecting continued investments in digital technology, talent, and branch network expansion, particularly in Kenya and Rwanda.

• Loan loss provisions increased slightly to KES 1.6 billion, underscoring the Group’s cautious approach to asset quality.

I&M Bank Kenya: Retail Growth and Digital Innovation

I&M Bank Kenya continued its upward trajectory with an 8% increase in PBT, supported by a 10% growth in operating income. The Bank saw significant gains in customer acquisition and satisfaction:

• New-to-bank customer growth soared by 134% year-on-year.

• Net Non-Performing Loans dropped by 9% to KES 11 billion.

• The Bank maintained a Net Promoter Score above 80%, signalling high customer satisfaction.

In line with its growth ambitions, I&M Bank Kenya has opened 23 new branches across 24 counties in the last two years, deepening its national presence and accessibility.

“We’ve doubled our customer base in just two years,” said Gul Khan, CEO of I&M Bank Kenya. “Customer transactions have more than doubled, and our continued investment in digital platforms and branch expansion shows our commitment to being closer to our customers.”

Recognition and Leadership

Crowning the quarter’s achievements, the Bank’s Founder and Chairman Emeritus, Mr. S.B.R. Shah, was honoured with the 2025 Lifetime Achievement in Banking Award by Think Business Africa, recognising his decades-long contribution to the region’s financial services sector.

Additionally, I&M Bank Kenya excelled at the 2025 Think Business Banking Awards, winning in 10 out of 14 categories, including:

• Best Retail Bank

• Best Bank in Product Innovation

• Runner-Up for Best Corporate Bank

These accolades reflect the Bank’s successful transition into a full-spectrum financial services provider while maintaining strength in its traditional corporate banking segment.

Outlook: Sustained Growth and Regional Impact

Looking ahead, I&M Group remains confident about its growth prospects for 2025. The Group plans to deepen its investment in technology, digital infrastructure, and product innovation while continuing its strategic regional expansion.

“Our consistent results affirm the strength of our diversified business model and customer-focused approach. We are well-positioned to drive inclusive financial growth across East Africa,” said the Group in its closing statement.