I&m Group Plc · NSEKE:IMH
I&m — H1 2023 Earnings Presentation
43 slides from I&m's earnings presentation, August 2023
Slide 1: H1 2023 Results Investor Presentation
INTEGRITY TRUST RESPECT INNOVATION COURAGE We Are On Your Side H1 2023 RESULTS INVESTOR PRESENTATION Classification: Public
Slide 2: Group at a glance
84 > 450,000 Branches Customers 4,374 Shareholders 119 >2,700 ATMs Staff Classification: Public
Slide 3: Regional footprint: Kenya, Uganda, Rwanda, Tanzania, Mauritius
KENYA I&M Bank Ltd 228,000+ Customers 40 Branches 51 ATMs 1,404 Staff UGANDA I&M Bank (Uganda) Ltd 75,000+ Customers 12 Branches 13 ATMs 304 Staff RWANDA I&M Bank (Rwanda) PLC 74,000+ Customers 17 Branches 38 ATMs 428 Staff TANZANIA I&M Bank (T) Ltd 32,000+ Customers 8 Branches 11 ATMs MAURITIUS 191
Slide 4: Macro-economic Highlights
We Are On Your Side MACRO- ECONOMIC HIGHLIGHTS Classification: Public
Slide 5: Regional economic growth in 1H 2023 remains strong
Exchange Rate Movement to USD 2% 1% -1% -1% -1% -4% q Regional economic growth in the 1H of 2023 remains -9% strong: -14% -14% -19% q The region continues to battle macro- economic challenges stemming from negative local KES RWF TZS MUR UGX and global trends leading to Y-o-Y YTD q Higher inflation r
Slide 6: Key Strategy Highlights
We Are On Your Side KEY STRATEGY HIGHLIGHTS Classification: Public
Slide 7: Aspiration, strategic pillars and enablers
Aspiration Eastern Africa’s Leading Financial Partner for Growth initiatives Strategic Pillars & 1. Driving Business Growth 2. Building a Resilient Organisation 3. Optimising the operating model Enablers Customer Experience Cultural Transformation Strategic Partnerships Data Analytics % growth of ne
Slide 8: Growth in income from Personal & Business Banking
Total Operating Income (Kshs Mn) Operating income 28% Breakdown by Business Segments Growth in income 19.1 & from Personal & 14% Business Banking 17% 17% 15.6 37% (2022: 25%) 6.9 12.8 5.1 55% 51% 28% 53% 3.9 16% 29% Growth in income 12.2 & 10.5 from Corporate & 32% 29% 31% 8.9 19% Institutional Bank
Slide 9: Customer numbers and spontaneous awareness score
Customer Numbers (000’) 460 395 322 Jun-21 Jun-22 Jun-23 Spontaneous Awareness Score 20% 5% 2% 2019 2020 2023 The brand has recorded the highest growth between 2020 and 2023 in the spontaneous awareness score Classification: Public
Slide 10: Bringing Convenience to Our Customers
Bringing Convenience to Our Customers 2021 2022 2023 ✓ M-Pesa pay bill integration ✓ Corporate On-the-Go (Internet ✓ Moving closer to our Banking Solutions) - Our customers by providing ✓ Business Connect Solution – Corporate Banking App is solutions that promote Collections integration with creatin
Slide 11: SME lifecycle support
As part of our retail strategy, the Group is exploring with various partners to provide financing and support to positively impact SMES & throughout the various stages of their lifecycle Launch Operational Grow SMEs are the backbone of the economy 50% - expected growth The SME Lifecycle contribution
Slide 12: Net loans and advances growth
Net Loans and Advances (Kshs Bn) Corporate & Institutional Banking Personal & Business Banking (Kshs Bn) (Kshs Bn) 17% 16% 33% 270 75 194 65 67 171 166 239 231 Jun-22 Dec-22 Jun-23 Jun-22 Dec-22 Jun-23 Corporate & Business Banking Personal & Business Banking has seen the fastest growth in performanc
Slide 13: Loan loss provisions, gross NPL ratio and cost of risk
Gross NPL Ratio Loan Loss Provisions (KES Bn) Cost of Risk 14.3 13.6% 2.6% 2.3% 10.1% 10.5% 13.8 13.7 1.2% Jun-22 Dec-22 Jun-23 Jun-22 Dec-22 Jun-23 Jun-22 Dec-22 Jun-23 Sectors impacted by the difficult macroeconomic environment & - Manufacturing, real estate, wholesale & retail which led to an inc
Slide 14: Deposits, cost of funds, capital and liquidity
Customer Deposit Mix Deposits distribution by segments Cost of Funds (Kshs Bn) (Kshs Bn) 4.3% 357 14% 313 312 12% 3.8% 3.8% 357 219 196 196 313 312 19% 117 116 138 213 Jun-22 Dec-22 Jun-23 Jun-22 Dec-22 Jun-23 187 181 Corporate & Institutional Retail Capital Adequacy Ratio Liquidity Ratio 20.7% 19.8
Slide 15: Investments in our platforms
Investments in our platforms Successes of our investments in contributing to our growth Profit Before Tax (KES) Digitally Active Customers ‘On-The-Go’ OTG -Redesigned 2019 HY 2023 Future State mobile app and web platform 48% 78% Enterprise Infrastructure* % of Transactions from Alternate Banking Cha
Slide 16: Investments in our people and brand
Investments in our people Profit Before Tax (KES) Talent Staff Numbers Management 2019 30% HY 2023 2,126 2,763 Learning & Staff Upskilling Development 10 learning hours achieved per staff Culture Culture Transformation Transformation Over 2,000 staff completed the Culture Change Cascade workshop Inv
Slide 17: Sustainability initiatives
• Supporting recycling efforts ➢ Partnered with the WEEE Centre to ensure safe disposal of e-waste within the I&M eco-system ➢ Financed T3 (Trash. Thread. Textile. Kenya Ltd) • >40% of USD 25mn funded towards green initiatives; Further commitment of USD 25mn to finance renewable energy projects, ene
Slide 18: Awards and recognition
Mauritius Uganda Rwanda Kenya Tanzania RWIBA Awards 2023 Think Business Awards CFI.co Insurance Innovation • Most Enlightened • 1st Runner-Up, Best Africa Bank 4.0 Awards • Best Custodian Bank - Awards 2022 Employer Bank in Tier 1 • Most Inspiring Retail Indian Ocean 2023 • 1st Runner-Up, Most • 2n
Slide 19: Group Financial Highlights
We Are On Your Side GROUP FINANCIAL HIGHLIGHTS Classification: Public
Slide 20: Statement of Comprehensive Income
Statement of Year on Year Comprehensive Income June 2023 June 2022 June 2021 Growth (2023/2022) (Kshs Millions) Net-Interest Income 12,215 10,521 8,866 16% Non-Interest Income 6,916 5,058 3,944 37% Total Income 19,130 15,579 12,809 23% Operating Expenses 9,341 7,288 6,155 28% Operating Profit 9,789
Slide 21: Statement of Financial Position
Statement of Financial Year on Year Position June 2023 Dec -2022 June 2022 Growth (2023/2022) (Kshs Millions) Cash & Bank Balances 26,614 22,818 24,945 7% Government Securities 126,124 113,112 121,404 4% Net Loans and Advances 269,743 238,590 231,070 17% Total Assets 503,498 436,600 439,665 17% Cust
Slide 22: Key ratios
Ratio June 2023 Dec 2022 June 2022 Liquidity 47% 46% 49% Capital Adequacy Ratio 19% 21% 20% Cost of Risk 2.6% 2.3% 1.2% Return on Equity 14% 15% 15% Return on Assets 2.1% 2.7% 2.4% Cost/Income Ratio 49% 45% 47% Gross NPL 13.6% 10.5% 10.1% Classification: Public
Slide 23: Subsidiary Performance Highlights
We Are On Your Side SUBSIDIARY PERFORMANCE HIGHLIGHTS Classification: Public
Slide 24: Kenya: GDP and inflation trends
GDP Trend (%) Inflation Trend 6.2% 9.2% 9.5% 9.0% 9.2% 5.2% 8.0% 5.3% 9.6% 9.1% 9.2% 4.3% 8.5% 7.9% 7.9% 3.7% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 ▪ GDP Growth has been resilient up to Q1 2023 - supported by services sec
Slide 25: Kenya: income, profit and key ratios
Total Operating Income (Kshs Bn) Operating Profit (Kshs Bn) 13.3 7.9 H1 FY H1 11.0 20% 6.8 17% Key Ratios 2023 2022 2022 H1 2021 9.7 21% 5.6 Cost to income ratio 40% 36% 39% 42% Cost of Risk 2.8% 2.3% 1.5% 1.7% ROE 15% 18% 16% 13% ROA 2.1% 3.1% 2.6% 2.2% H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 20
Slide 26: Kenya: assets, loans and deposits
Total Assets (Kshs Bn) Net Loans & Advances (Kshs Bn) Customer Deposits (Kshs Bn) 13% 17% 14% 361 345 319 203 206 258 266 282 176 234 157 213 H1 2021 H1 2022 FY 2022 H1 2023 H1 2021 H1 2022 FY 2022 H1 2023 H1 2021 H1 2022 FY 2022 H1 2023 ✓ Net loans and advances up by 17% year on year as we continue
Slide 27: Tanzania: inflation and GDP trends
Quarterly Inflation Trend Q1 GDP Growth Trend 4.6% 4.7% 5.5% 5.6% 4.9% 4.0% 4.1% 5.3% 5.0% Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Q1 2020 Q1 2021 Q1 2022 Q1 2023 ▪ GDP grew in Q1 2023, supported by strong activity in agriculture, construction and mining ▪ As of June 2023, the headline inflation eased to
Slide 28: Tanzania: income, profit and key ratios
Total Operating Income (Kshs Bn) Operating Profit (Kshs Bn) 1.4 56% H1 H1 108% 0.5 Key Ratios 2023 FY 2022 2022 H1 2021 0.9 Cost to 0.7 income ratio 64% 73% 74% 76% 0.2 0.2 Cost of Risk 0.7% 6.5% 0.4% 0.1% ROE 1.0% -11% 4.8% 5.7% ROA 0.2% -1.7% 0.8% 0.9% H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 20
Slide 29: Tanzania: assets, loans and deposits
Total Assets (Kshs Bn) Net Loans & Advances (Kshs Bn) Customer Deposits(Kshs Bn) 24% 19% 22% 28.5 23.3 23.3 24.0 38.4 19.6 19.0 18.7 31.0 32.0 16.7 26.2 H1 2021 H1 2022 FY 2022 H1 2023 H1 2021 H1 2022 FY 2022 H1 2023 H1 2021 H1 2022 FY 2022 H1 2023 ✓ Net Loans and Advances up 19% year on year driven
Slide 30: Rwanda: GDP and inflation trends
Quarterly GDP Trend Inflation Trend 10.0% 33.8% 31.7% 31.1% 30.3% 7.9% 9.2% 31.0% 31.0% 7.5% 7.3% 23.9% 28.4% 20.4% 22.4% 20.4% 19.6% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 ▪ GDP grew by 9.2% in Q1 2023, supported b
Slide 31: Rwanda: income, profit and key ratios
Total Operating Income (Kshs Bn) Operating Profit (Kshs Bn) 0.9 -8% 2.5 0.9 H1 FY H2 2.2 15% 0.7 Key Ratios 2023 2022 2022 H1 2021 1.8 Cost to income ratio 67% 60% 58% 57% Cost of Risk 0.1% 1.4% 1.2% 0.6% ROE 12.7% 13.9% 13.0% 12.0% H1 2021 H1 2022 H1 2023 H1 2021 H1 2022 H1 2023 ROA 1.8% 1.9% 1.8%
Slide 32: Rwanda: assets, loans and deposits
Total Assets (Kshs Bn) Net Loans & Advances (Kshs Bn) Customer Deposits (Kshs Bn) 14% 9% 11% 65 30 38 57 56 27 27 35 34 46 23 27 H1 2021 H1 2022 FY 2022 H1 2023 H1 2021 H1 2022 FY 2022 H1 2023 H1 2021 H1 2022 FY 2022 H1 2023 ✓ Net loans and advances driven by strong demand within SME and Corporate B
Slide 33: Uganda: GDP and inflation trends
Q1 GDP Trend Annual Inflation Trend 10.7% 10.2% 10.4% 4.9% 10.6% 9.2% 10.0% 9.0% 5.1% 8.0% 9.0% 2.8% 6.2% 4.9% 1.2% Q1 2020 Q1 2021 Q1 2022 Q1 2023 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 ▪ GDP increased in Q1 2023 by 4.9%, supported by strong growth in agricultu
Slide 34: Uganda: income, profit and key ratios
Total Operating Income (Kshs Bn) Operating Profit (Kshs Bn) 1.2 42% 117% 0.1 Key Ratios H1 2023 FY 2022 H1 2022 0.8 Cost to income 0.1 ratio 88% 90% 92% 0.2 Cost of Risk 0.5% -7% -6.5% ROE 1.9% 7.3% 1.4% -0.0 H1 2021 H1 2022 H1 2023 ROA 0.2% 1.2% 0.4% H1 2021 H1 2022 H1 2023 Loan Loss Provision expe
Slide 35: Uganda: assets, loans and deposits
Total Assets (Kshs Bn) Net Loans & Advances (Kshs Bn) Customer Deposits (Kshs Bn) 28% 13% 42% 33 24 10.1 25 26 7.9 7.1 21 21 H1 2022 FY 2022 H1 2023 H1 2022 FY 2022 H1 2023 H1 2022 FY 2022 H1 2023 ✓ Net loans and advances and deposits have shown strong improvement following the stabilization of the
Slide 36: Mauritius: GDP and inflation trends
GDP Growth trend Inflation Trend 14.60% 11.9% 12.1% 11.5% 11.8% 11.0% 11.9% 12.2% 8.3% 7.60% 11.00% 9.1% 7.9% 5.80% 6.10% 7.70% 5.50% Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 ▪ Mauritius economy is tracking on its recovery path, growing at 5.6% in Q1 2023; Tourism
Slide 37: Mauritius: income, profit and key ratios
Total Operating Income (Kshs Bn) Operating Profit (Kshs Bn) 0.8 2.5 H1 FY H1 Key Ratios 2023 2022 2022 H2021 0.6 100% 1.8 Cost to income 1.6 51% 0.4 ratio 66% 67% 74% 66% Cost of Risk -0.4% -0.2% -0.1% 0.2% ROE 16% 14% 8.5% 5.9% H1 2021 H1 2022 H1 2023 ROA 0.7% 2.5% 0.7% 0.4% H1 2021 H1 2022 H1 2023
Slide 38: Mauritius: balance sheet growth
Total Assets (Kshs Bn) Net Loans & Advances (Kshs Bn) Customer Deposits (Kshs Bn) 34% 49% 34% 127 154 77 107 131 98 118 95 115 57 54 52 H1 2021 H1 2022 FY 2022 H1 2023 H1 2021 H1 2022 FY 2022 H1 2023 H1 2021 H1 2022 FY 2022 H1 2023 ✓ Balance sheet growth driven by the execution of the Sub-Saharan H1
Slide 39: Group Outlook
We Are On Your Side GROUP OUTLOOK Classification: Public
Slide 40: Key challenges and group focus
Key Challenges The Group continues its focus on: Supply chain disruptions continue to pose 01 Accelerate challenges to Inflation Ecosystem Partnerships Continued High Interest rates - Expansion of our improvements 02 Borrowing costs remain Distribution in our Digital high Network Value Proposition C
Slide 41: Medium-term targets and strategic focus
Profit Before Tax KES Focus on providing our Corporate Customers with Leveraging on our value add services, maintain our advantage in Trade Finance, leverage in Agriculture +20Bn strengths in and Oil & Gas opportunities the corporate segment + Return on Equity +21% Grow our personal and business ban
Slide 42: Disclaimer
The contents herein have been presented in good faith. The information, statements and opinions set out in this presentation and subsequent discussion do not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any securities o
Slide 43: Thank You
THANK YOU Merci Webale Murakoze Asante I&M GROUP PLC 1 PARK AVENUE 1ST PARKLANDS P.O. BOX 30238 – 00100 TEL: +254 (0)20 3221000 We Are On Your Side Investor-Relations@imgroup-plc.com INTEGRITY TRUST RESPECT INNOVATION COURAGE Classification: Public