I&m Group Plc · NSEKE:IMH
I&m — H1 2024 Earnings Presentation
30 slides from I&m's earnings presentation, August 2024
Slide 1: HY 2024 Investor Presentation
HY 2024 INVESTOR PRESENTATION
Slide 2: Our Regional Footprint
Classification: Confidential Our Regional Footprint KENYA TANZANIA I&M Bank Ltd I&M Bank (T) Ltd UGANDA ✓393,000+ ✓21,000+ customers customers ✓8 Branches KENYA ✓51 Branches ✓11 ATMs ✓58 ATMs ✓207 staff ✓1,620 staff RWANDA RWANDA I&M Bank (Rwanda) PLC ✓91,000+ customers ✓19 Branches MAURITIUS ✓45 AT
Slide 3: Our New Horizon: iMara 3.0
VARA | Group OUR NEW HORIZON iMara 3.0
Slide 4: Our New Horizon: iMara 3.0 Strategy (2024 – 2026)
Classification: Confidential Our New Horizon: iMara 3.0 Strategy (2024 – 2026) Long Term Ambition Eastern Africa’s Leading Financial Partner for Growth Best Bank for >90 % 3 Year Impact +10 Mn Lives Digitally Active Customer Experience Objectives Impacted Customers (NPS>70%) 1 2 3 Develop Leadership
Slide 5: Our North Star
Classification: Confidential Our North Star 2026 Aspiration Return on Equity +20% Develop Leadership in our Core Segments (Corporate & Commercial) Digitally Active Customers + +90% Impact Net Promoter Score >10 Million Lives Build Relevance in Emerging +70% Customer Segments (Retail & SMEs) + Grow t
Slide 6: Our Key Successes
Classification: Confidential Our Key Successes Customer Numbers Revenue from New Business HY 2023 HY 2024 HY 2023 HY 2024 <460,000 >635,000 <10% 22% ~4 Million Lives Impacted Net Promoter Score Subsidiary PBT Contribution HY 2023 HY 2024 HY 2023 HY 2024 71% 78% 22% 26% Digitally Active Customers Ret
Slide 7: Strategy Review: Developing Leadership in our Core Segment
Classification: Confidential Strategy Review: Developing Leadership in our Core Segment Corporate & Institutional Building the Trade Finance Business Building the Trade Business Trade Finance Value +11%* Cross Border Business Revenue USD 2.3Mn +44%* Target Growth Areas The Target Growth Areas Contri
Slide 8: Financial Contribution: Corporate & Institutional Banking
Classification: Confidential Financial Contribution: Corporate & Institutional Banking Operating Income (KES Bn) CIB Contribution to Operating 8.5 Income 37% 2026 Priorities 31% +49% 30% 2.5X 5.7 +17% 4.9 Revenue Growth 3.5 Jun-22 Jun-23 Jun-24 Jun-22 Jun-23 Jun-24 Product Holding Per Customer Net L
Slide 9: Strategy Review: Building Relevance in Emerging Customer Segment
Classification: Confidential Strategy Review: Building Relevance in Emerging Customer Segment Personal & Business Banking Distribution Channels Accelerating Growth +15 138 through Customer Centric +13 123 Product Building the Innovation Trade Business 97 84 38%* Growth in Customer Numbers No. of Bra
Slide 10: Financial Contribution: Personal & Business Banking
Classification: Confidential Financial Contribution: Personal & Business Banking 2026 Priorities Operating Income (KES Bn) PBB Contribution to Operating Income 11.9 1M+ 53% +34% 8.9 6.9 +29% New Customers Acquisition 47% 44% Jun-22 Jun-23 Jun-24 Jun-22 Jun-23 Jun-24 95% Digitally Active Customers Ne
Slide 11: Strategy Review: Becoming a Leader in Ecosystems
Classification: Confidential Strategy Review: Becoming a Leader in Ecosystems 2026 Priorities 3.4Mn Building the Trade Business Lives Impacted 10M Number of Lives Impacted 5% Payments Digital lending services Building the Trade Business Contribution to 5X Operating Income Remittances Ecosystem Reven
Slide 12: Financial Contribution: All Segments
Classification: Confidential Financial Contribution: All Segments Operating Income (KES Bn) Contribution to Operating Income 23 19 8.5 16 +49% 31% 30% 5.7 37% +17% 4.9 8.9 +34% 44% 47% +29% 11.9 6.9 53% 3.8 4.5 24% 24% 2.3 10% Jun-22 Jun-23 Jun-24 Jun-22 Jun-23 Jun-24 Corporate & Personal & Business
Slide 13: Strategy Review: Investing for Growth
Classification: Confidential Strategy Review: Investing for Growth Digitization People Brand Investment in Technology Investment in People Investment in Brand 28% of Total Capital 39% of Total Operating 7% of Total Operating Expenses Expenditure Expenses Digitally Active Customers Employee Engagemen
Slide 14: Strategy Review: Creating Impact
Classification: Confidential Strategy Review: Creating Impact 4+ Million Lives Impacted Resource Efficiency Enhancing the Quality of Life 30% reduction Diversity & Inclusion commitment in KES 162Mn carbon emissions by Committed to 2030 rehabilitate Ngong road forest 19%* reduction in fuel usage Staf
Slide 15: Recognition: Living Our Brand Promise ‘On Your Side’ – 2024 Awards
Classification: Confidential Recognition: Living Our Brand Promise ‘On Your Side’ – 2024 Awards 2024 2024 2024 2024 2024 Winner 2nd Runner Up 2nd Runner Up 2nd Runner Up 2nd Runner Up Most Customer Best Bank Best Bank Best Bank Best Bank Centric Bank Sustainable CSR Corporate Banking Trade Financing
Slide 16: Group Financial Highlights
VARA | Group GROUP FINANCIAL HIGHLIGHTS
Slide 17: Operating Environment
Classification: Confidential Operating Environment Country Trend Headwinds Tailwinds Impact on our Business ■ High interest rates/inflation ■ Q1 2024 GDP growth of 5% year on ■ Negative Impact on credit growth environment year ■ Impact on net interest margins ■ Sovereign Rating downgrade by Fitch( ■
Slide 18: Group Income Statement
Classification: Confidential Group Income Statement Operating Income (KES Bn) Profit before Impairments (KES Bn) 22.7 +19% 11.9 19.1 +21% Key Ratios HY FY HY HY 9.8 2024 2023 2023 2022 +23% 15.6 +18% 8.3 Cost to income ratio 48% 48% 49% 47% Cost of Risk* 2.5% 2.5% 2.6% 1.2% ROE* 14% 15% 13% 14% ROA*
Slide 19: Group Balance Sheet
Classification: Confidential Group Balance Sheet Customer Deposits (KES Bn) Total Assets (KES Bn) 564 Key Ratios HY FY HY HY 503 419 +12% 2024 2023 2023 2022 440 +18% +15% 357 +14% Loans to Deposits 68% 75% 76% 74% 313 Net NPA 5.2% 5.0% 6.8% 2.3% Total Capital/Total 18% 19% 19% 20% Risk Weighted Ass
Slide 20: Subsidiary Performance Highlights
SUBSIDIARY PERFORMANCE HIGHLIGHTS
Slide 21: Kenya Macro economic environment has been challenging
Classification: Confidential Kenya Macro economic environment has been challenging... Overall Inflation Trend Exchange Rate Movement ■ Q1 2024 year on year GDP growth remained strong at 5%; 8.00% 17% 16% 16% 7.00% ■ Inflation has been on a downward 6.00% trajectory following the tightening of the 5.
Slide 22: Kenya: 74% (78%) contribution to Profit Before Tax
Classification: Confidential Kenya: 74% (78%) contribution to Profit Before Tax; 73% (73%) to Total Assets Operating Income (KES Bn) Profit before Tax (KES Bn) 6.3 15 Key Ratios HY FY HY HY +17% 5.5 +21% -6% 5.2 2024 2023 2023 2022 13 +20% Cost to income ratio 42% 40% 40% 39% 11 Cost of Risk* 2.5% 2
Slide 23: Tanzania: 5% (1%) contribution to Profit Before Tax
Classification: Confidential Tanzania: 5% (1%) contribution to Profit Before Tax; 7% (8%) to Total Assets Operating Income (KES Bn) Profit before Tax (KES Bn) 1.8 0.4 Key Ratios HY FY HY HY +25% 2024 2023 2023 2022 1.4 Cost to income ratio 59% 59% 64% 74% +985% +56% Cost of Risk* 2.9% 5.4% 4.2% 2.9%
Slide 24: Rwanda: 16% (13%) contribution to Profit Before Tax
Classification: Confidential Rwanda: 16% (13%) contribution to Profit Before Tax; 14% (13%) to Total Assets Operating Income (KES Bn) Profit before Tax (KES Bn) 3.5 1.3 Key Ratios HY FY HY HY +37% +59% 2024 2023 2023 2022 +15% 2.5 Cost to income ratio 48% 62% 67% 58% +16% 2.2 0.8 Cost of Risk* 2.9%
Slide 25: Uganda: 2% (2%) contribution to Profit Before Tax
Classification: Confidential Uganda: 2% (2%) contribution to Profit Before Tax; 6% (7%) to Total Assets Operating Income (KES Bn) Profit before Tax (KES Bn) 0.3 1.4 +22% Key Ratios HY FY HY HY 1.2 2024 2023 2023 2022 +42% Cost to income ratio 84% 80% 88% 92% -55% 0.2 0.8 +34% Cost of Risk* 1.1% 0.8%
Slide 26: Mauritius: 4% (7%) contribution to Profit Before Tax
Classification: Confidential Mauritius: 4% (7%) contribution to Profit Before Tax Operating Income (KES Bn) Profit before Tax (KES Bn) 3.1 1.0 Key Ratios HY FY HY HY +23% 2024 2023 2023 2022 2.5 -26% Cost to income ratio 59% 62% 66% 74% +51% +107% 0.7 Cost of Risk* 1.4% -0.7% -0.4% -0.1% 1.6 0.5 ROE
Slide 27: Summary
SUMMARY
Slide 28: Group Summary Highlights
Classification: Confidential Group Summary Highlights Profit Before Tax (Kshs) Total Income (Kshs) Cost of Risk 8.7bn 22.7bn 2.5% +24% +19% Absolute - 0.1% Net Loans & Advances (Kshs) Customer Deposits (Kshs) Return on Equity 284bn 419bn 14% +5% +18% Absolute 1% Classification: Confidential
Slide 29: Disclaimer
Classification: Confidential 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 o
Slide 30: 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 Investor-Relations@imgroup-plc.com