I&M Group PLC reported exceptional financial performance for the fiscal year ending December 31, 2024, with significant growth across key metrics despite a challenging macroeconomic environment. The Group’s resilience and strategic focus have reinforced its position as a leading financial institution in East Africa.
I&M Group Key Financial Metrics
I&M Group recorded an impressive Profit After Tax (PAT) of KES 16.7 billion, representing a 25.6% year-on-year growth compared to FY2023’s KES 13.3 billion. Profit Before Tax (PBT) also rose sharply by 28.4% to KES 19.9 billion (FY2023: KES 15.5 billion).
Earnings Per Share (EPS) increased to KES 9.30, up from KES 7.63 the previous year, highlighting improved returns for shareholders. Despite the overall growth, Total Assets expanded marginally by 0.3% to KES 581.3 billion, supported by a 14% growth in holdings of Government securities to KES 89 billion (FY2023: KES 78.1 billion).
The loan book faced a 7.8% decline to KES 287.1 billion (FY2023: KES 311.3 billion) due to foreign exchange revaluation impacts and shrinking consumer wallets in a tough economic climate. Similarly, customer deposits were down 1.1% to KES 412.2 billion. However, these declines were offset by a 34.9% increase in Total Interest Income to KES 68.1 billion, driven by a significant rise in interest income from Government securities (+38.3%) and loans (+32.3%).
On the other hand, Non-Funded Income (NFI) declined 2.8% to KES 13.7 billion, primarily due to decreases in foreign exchange trading income and fees and commissions on loans. The Group’s operating expenses rose by 15.8% to KES 23.5 billion (excluding provisions), driven by higher provisions and increased operational costs.
Sarit Raja-Shah, Executive Director of I&M Group, commented, “The FY2024 results underscore our ability to adapt to an evolving financial landscape while driving sustainable growth. We remain focused on supporting economic development and delivering enhanced value to all stakeholders.”
Asset Quality and Dividend
Gross Non-Performing Loans (NPLs) rose slightly by 0.3% year-on-year to KES 35.5 billion, with the NPL ratio standing at 12.4%, below the sector average of 16.4%. I&M maintained prudent asset management with notable mark-to-market gains on investment securities worth KES 3.8 billion.
I&M Group has declared a final dividend of KES 1.70 per share, bringing the total FY2024 dividend to KES 3.00 per share (FY2023: KES 2.55). This represents a dividend yield of 8.7% based on the closing price of KES 34.55 on March 25, 2024, and a payout ratio of 32.3%.
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