I&M Group delivers strong half-year performance, eyes more acquisitions in East Africa

Regional Financial Services Group, I&M Group PLC, has announced a significant increase in after-tax profit for the first half of 2021, with a 33% rise in earnings. The company recently made a strategic move by acquiring a 90% stake in Uganda's Orient Bank Limited for approximately $37.2 million USD, slightly exceeding the initial cost projection of $32.7 million USD. Chris Lowe, the Regional Director for I&M Group PLC, discussed the company's performance and the impact of the COVID-19 pandemic on the banking industry during a recent interview with CNBC Africa. Lowe highlighted the importance of supporting customers through challenging times by providing restructuring options and fee waivers. The focus on business growth, resilience, and optimization has driven the company's success in navigating the uncertain economic landscape. The firm's robust financial results are a testament to its commitment to capital and liquidity management, alongside continued investments for future growth. Lowe emphasized the significance of diversifying into new sectors, such as the M SME and retail segments, to drive business expansion. The acquisition of Varian Bank in Uganda has been a pivotal move for I&M Group, enabling them to establish a strong presence in the market. The integration process is underway, with a focus on driving new business and enhancing customer service. The company aims to become one of the top five players in the region within the next five years, with substantial investments planned in technology, processes, and personnel. While the cost of the acquisition in Uganda has increased slightly, the additional capital infusion reflects the company's long-term growth strategy. The expansion into Uganda and strong performance in markets like Rwanda have contributed to a 12% growth in the group's total assets. Looking ahead, I&M Group is focused on leveraging its regional expertise to capture growth opportunities in East Africa and adjacent markets. The company is eyeing potential acquisitions in countries like Tanzania, Rwanda, and Uganda, while also exploring market opportunities in DRC, Zambia, and Ethiopia. By aligning its business model to local market dynamics and customer needs, I&M Group aims to solidify its position as a leading financial partner for growth in the region.