I&M Bank’s 2013 financial results reflect a sustained growth pattern that has been a consistent feature of the Bank in the past decade.
I&M Bank Group’s total assets, with restated figures for 2012 to conform to equity method of consolidating, registered a 18.5 % growth to Kshs. 141.3 Billion and Profit Before Tax increased by 27% from Kshs. 5.7 Billion in 2012 to Kshs. 7.26 Billion in 2013. Group Customer Loans increased by 29.4% to reach Kshs 91.9 Billion while Customer Deposits increased by 10.6% to Kshs. 97.1 Billion. Of this, I&M Bank’s overseas subsidiaries in Rwanda and Tanzania contributed Kshs 1.2 Billion in Profit Before Tax.
The Kenyan operations of the Bank achieved a Profit Before Tax of Kshs 6.06 Billion reflecting a 28.3% growth over 2012 as total assets grew by 21.5%, crossing the Kshs 100 Billion mark to Kshs 110.3 Billion. A major competitive advantage continues to be its outstanding operational efficiency which was maintained at 34.8%, making it one of the best in the Kenyan Banking Industry.
Announcing the results, the Executive Director, Mr Sarit S Raja Shah said ‘’2013 was an encouraging year for the Group as we managed to take advantage of a relatively stable interest rate and exchange rate environment to align our balance sheet to maintain profitability”. Mr Arun S Mathur, the Bank’s CEO, also added, ‘’Like the rest of the Banking industry, the major concern remains with our customers who are in the construction industry where payments have not been forthcoming for various contracts. We do hope that this issue will be addressed urgently as it did have an adverse effect on the performance of the Banking industry in 2013.” The Bank, in line with the trend seen in the Kenyan banking industry, reported an increase in its non-performing loans by Kshs 303 million to Kshs 1 billion.
In 2013, I&M Holdings Limited, the holding company of the I&M Bank Group went public with a listing on the Nairobi Securities Exchange, thereby enabling the Bank to attain flexibility and efficiency in its capital structure planning and expansion. During 2013, I&M Bank also laid the ground work for an aggressive expansion of its branch and ATM network in Kenya in 2014.
The Bank continued to upgrade it’s Alternate Banking Channels through improvements in its Payment Cards, Internet and Mobile Banking platforms and has recently launched its Social Media Channels with presence on Facebook, YouTube and Twitter