I&M Bank profit after tax hits Ksh8.6bn in 2021

I&M Group PLC reported a 3% growth in profit after tax in 2021 to 8.6 billion Kenyan Shillings compared to 8.4 billion in the same period in 2020. The performance was fueled by robust growth in customer deposits and loans, as well as strategic investments in digital banking infrastructure. Chris Low, the Regional Director of I&M Group PLC, attributes this growth to the bank's accelerated investment in its digital transformation journey. In 2021, the bank ramped up its digital capabilities by launching internet and mobile applications for both retail and corporate customers. Additionally, innovations such as WhatsApp banking were introduced in markets like Tanzania and Rwanda. These digital enhancements aimed to provide customers with improved access and functionality, aligning with the bank's customer-centric approach. The bank's focus on data analytics also enabled a better understanding of customer needs and preferences, further driving growth. Low emphasized the importance of digital innovation for the sector's future, highlighting the potential for cross-pollination of successful digital strategies across different markets. The bank's dividend payout ratio increased to 29%, reflecting a more sustainable payout level in line with the evolving market conditions. Despite the challenges posed by the COVID-19 pandemic, I&M Bank maintained its commitment to shareholder value while adopting a cautious approach to dividends during the crisis. The bank's non-Kenyan banking subsidiaries, notably Rwanda and Tanzania, delivered strong performances, with Rwanda experiencing double-digit pre-tax profit growth and Tanzania achieving its best year ever. The acquisition of Orient Bank in Uganda has shown promising progress, with initiatives to integrate customers into the I&M family and introduce interregional services for enhanced customer experience. Looking ahead, Chris Low outlined the key drivers and challenges for the banking sector in 2022. Geopolitical events like the Russian-Ukrainian conflict and supply chain disruptions are expected to impact the regional economy, potentially affecting credit demand and customer performance. Additionally, upcoming elections may introduce further uncertainty for business activities. In this environment, I&M Bank remains committed to supporting its customers as a financial partner for growth, while maintaining a prudent approach to lending. The bank's strategic focus on geographic diversification and digital innovation positions it well to navigate evolving market dynamics and drive future profitability.