I&m Group Plc · NSEKE:IMH
I&m — FY2020 Earnings Presentation
44 slides from I&m's earnings presentation, Apr 15, 2021
Slide 1: Investor Presentation FY 2020
Investor Presentation FY 2020 15th April 2021
Slide 2: Table of Content
TABLE OF CONTENT Part 1: Strategic Highlights Part 2: Economic Overview Part 3: Group Consolidated Performance FY 2020 Part 4: Subsidiary Performance FY 2020 Part 5: Appendices Investor Presentation FY 2020
Slide 3: Part 1: Strategic Highlights
Part 1: Strategic Highlights Investor Presentation FY 2020
Slide 4: Strategic pillars and initiatives: iMara 2.0 Strategy
The Group has refreshed its iMara strategy during 2020 iMara 2.0 Strategy Strategic pillars and initiatives Aspiration Become a banking powerhouse in East Africa for Medium Eastern Africa’s leading Financial Partner for Growth to Large Businesses Lead on profitability amongst Bank of choice in core
Slide 5: Re-organisation and continued investment in existing entities and Uganda
To support the refreshed strategy there has been a re-organisation and continued investment in existing entities and in Uganda" Group Structure – A new organizational structure has been implemented to oversee operationalization of Group's Additional Investment – Regional Expansion – regional footpri
Slide 6: Investments in platforms to improve customer experience and resilience
A number of investments have been made in the Group's platforms to improve customer experience and resilience . Card Management System Technology Implementation and Continued investment in future-state operationalization of an end- infrastructure paving the way for (i) to-end solution for issuance d
Slide 7: Market driven solutions rolled out across the Group
A number of market driven solutions are being rolled out across the Group I&M On the Go Pilot launch of the I&M On the Go project for Corporate and Business Customers. The digital solution is aimed at improving the digital experience for I&M Bank customers using human centered design principles, col
Slide 8: Investing in shared growth agenda with Society
The Group continues to invest in its shared growth agenda with Society The different entities participated in coordinated activities with governments and other partners to support vulnerable communities impacted by the covid-19 pandemic. I&M Kenya set aside KES 50 Mn, I&M Rwanda Plc contributed RWF
Slide 9: Part 2: Economic Overview
Part 2: Economic Overview Investor Presentation FY 2020
Slide 10: Economic Overview
Economic Overview OUR HISTORY Global Conditions Pandemic Impact The IMF estimates the global economy to have Kenya’s GDP contracted by 0.1% in 2020 shrunk by 4.4% in 2020 as a result of the having been depressed by slow down of the global Covid-19 pandemic1. There is great economy due to Covid-19 co
Slide 11: Part 3: Group Consolidated Performance: FY 2020
Part 3: Group Consolidated Performance: FY 2020 Investor Presentation FY 2020
Slide 12: IMHP Performance Highlights Dec 2020 vs Prior Year
IMHP Performance Highlights Dec 2020 Vs Prior Year OUR HISTORY Profit Before Tax Net Interest Income Non Interest Income 10,952m 15,600m 8,638m -25% +1% +4% Fee (less LPF) / Income Customer Deposits Loans & Advances [Gross] 28% 262.7bn 187.4bn Absolute +1% +14% +7% Cost/Income Ratio Return on Capita
Slide 13: Performance Highlight
Performance Highlight OUR 2020 PERFORMANCE I&M Holdings PLC, recorded a 14% growth in its Balance Sheet size for its Balance Sheet Growth 2020 Full Year Financial Results, up from Kshs. 315.2 billion in 2019 to Kshs.358.09 billion in 2020, bolstered largely by growth in customer deposits The Group,
Slide 14: Income Statement Highlights
I&MOUR Holdings PLC – Income Statement Highlights HISTORY Dec 20 vs Dec Dec-18 Dec-19 Dec-20 Particulars 19 Kshs Mn Kshs Mn Kshs Mn Y-Y % ▲ Net Interest Income 15,594 15,510 15,600 1% Non Funded Income 7,597 8,285 8,638 4% Total Operating Income 23,191 23,795 24,238 2% Operating Expenses 8,481 9,461
Slide 15: Balance Sheet Highlights
I&M Holdings PLC – Balance Sheet Highlights OUR HISTORY Dec-18 Dec-19 Dec-20 20 vs 19 Particulars Kshs Mn Kshs Mn Kshs Mn Y-Y % ▲ Cash & Bank Balances 14,867 15,386 19,403 26% Investments & Placements 85,832 97,587 120,047 23% Loans & Advances (net) 166,737 175,329 187,391 7% Other Assets 21,086 26,
Slide 16: Ratio Analysis
I&M Holdings PLC – Ratio Analysis OUR Dec 18 Dec 19 Dec-20 HISTORY Liquidity 47% 46% 49% Cost/Income Ratio 37% 40% 41% Net NPA 5.8% 4.7% 3.9% Gross NPA 12.6% 11.4% 11.8% Return on Equity 17% 19% 12% Return on Assets 2.9% 3.4% 2.3% Capital Adequacy Ratio 16% 17% 19% Loan to Deposit Ratio 78% 76% 71%
Slide 17: Subsidiary Contribution
I&M Holdings PLC – Subsidiary Contribution OUR HISTORY % CONTRIBUTION TO LOANS & % CONTRIBUTION TO DEPOSITS ADVANCES CONTRIBUTION TO PBT 73% 75% 68% 70% KSHS ‘BN' 12.00 23%21% 10.3 16%13% 5% 6% 6% 5% 5% 5% 3% 4% Dec-19 Dec-19 Dec-20 Kenya Rwanda Tanzania Mauritius Kenya Rwanda Tanzania Mauritius Dec
Slide 18: Sectorial Distribution of Loans & Advances
Sectorial Distribution of Loans & Advances OUR HISTORY 27% 26% 19% 19% 18% 18% 10% 9% 9% 8% 7% 7% 7% 5% 3% 2% 2% 2% 1% 1% 0% 0% Transport and Wholesale and Building and Business Finance and Mining and Electricity and Manufacturing Real estate Others communicatio Agriculture retail trade construction
Slide 19: Distribution of Restructured Loans & Advances
Distribution of Restructured Loans & Advances Sectorial 16% 20% Gross loans restructured 16% 14% 14% 14% Segmentation 12% 11% 5% 3% 18% 2% 71% CORPORATE BANKING BUSINESS BANKING RETAIL BANKING The sectorial distribution comprises the 3 banking subsidiaries, I&M Bank Kenya Ltd, I&M Bank Tanzania Ltd
Slide 20: Deposit Mix
Deposit Mix GROUP STRUCTURE CURRENCY MIX DEPOSIT MIX 66% 66% Businesses 31% continue to hold funds in higher yielding deposits 34% 34% with reduced investments activities due to the pandemic 69% Dec-19 Dec-20 LCY FCY Low Cost High Cost The deposit mix comprises the 3 banking subsidiaries 19
Slide 21: Non Funded Income
NFI [Kshs Mn] Fee/Cost vs Fee/Income GROUP STRUCTURE+4% NFI [Kshs Mn] Fee/Cost Fee/Income 8,286 8,638 -27% 90% 1,884 73% 2,578 88% 85% +4% 4,170 3.994 FX Income Fees & 33% 36% Commissions 27% 35% Other Income +51% 1,714 2,584 2019 2020 Other income includes; 1. Net income on financial assets at fair
Slide 22: Consolidated Loans & Advance and NPLs
Consolidated Loans & Advance and NPLs Gross NPLs Interest on Advances Coverage Ratio -2% +11% 22,364 21,885 59% 67% 21,310 23,595 Dec-19 Dec-20 Dec-19 Dec-20 Loan Loss Provisions Cost of Risk +289% Dec-19 Dec-20 2,473 1.2% 11% 12% 636 0.3% Gross NPA Net NPA 5% 4% Dec-19 Dec-20 Dec-19 Dec-20 21
Slide 23: Value to Shareholders
Value to Shareholders Return on Equity Return on Assets 3.0% 2.9% 3.4% 15% 17% 18% 12% 2.3% 2017 2018 2019 2020 2017 2018 2019 2020 Dividend & Bonus Issue – I&M Holdings board of directors has proposed a dividend of KSh2.25 per share for the year 2020 and a bonus issue of one bonus share for every o
Slide 24: Other Operational KPIs
Other Operational KPIs 2019 2020 System Uptime Performance 98% 99% Branch Transactions 36% 33% Alternate Banking Channels 64% 67% Transactions Complaint Resolution Rate 2020 – 89% 2019 – 84% Above is for I&M Bank Limited, Kenya and also reflective of the Group 23
Slide 25: Part 4: Subsidiary Performance: FY 2020
Part 4: Subsidiary Performance: FY 2020 Investor Presentation FY 2020
Slide 26: Kenyan Banking Sector Overview & Highlights
Kenyan Banking Sector Overview & Highlights GDP Policy Measure on Impact of Increase in NPLs Pandemic GDP is estimated to Adverse effects of grow at 4.4% in 2021 There was growth in credit to the pandemic on assuming no the private sector, this relative economic activity lockdowns are recovery towar
Slide 27: I&M Bank Ltd, Kenya – Financial highlights
I&M Bank Ltd, Kenya – Financial highlights HighlightsDec 2019 Loans (Kshs Bn) Deposits (Kshs Bn) Dec 2020 Vs Dec 2019 Vs Reported PBT in KES +6% +12% 2019: 12bn Dec 2018 150 195 218 142 2020: 10.3bn Net Revenue in KES 2019: 18.4bn 2020: 18.4bn Cost/Income 2019: 33% 2020: 35% Dec-19 Dec-20 Dec-19 Dec
Slide 28: Economic Review - Tanzania
Economic Review - Tanzania GDP • The overall GDP rate dropped to 4.5% by Q3-2020 compared to 5.7% registered in Q1-2020 and 7.3% registered in the corresponding period in 2019. The economic outlook remains positive in 2021 as the recovery continue to gather momentum, albeit at a marginal pace. The G
Slide 29: I&M Bank (T) Ltd, Tanzania – Financial highlights
I&M Bank (T) Ltd, Tanzania– Financial highlights Loans (Kshs Bn) Deposits (Kshs Bn) Highlights Dec 2020 Vs Dec 2019 -1% +26% Reported PBT in KES 15 15 14 17 2019: 0.4bn 2020: 0.4bn Net Revenue in KES 2019: 1.7bn 2020: 1.7bn Cost/Income 2019: 60% 2020: 63% Dec-19 Dec-20 Dec-19 Dec-20 NFI/Total Income
Slide 30: Economic Review - Mauritius
Economic Review - Mauritius GDP Economy Country expects a recovery of 7.5% growth in 2021 The country faces the challenge following the projected contraction of 14.2% with the of being listed on the EU announcements around COVID-19 vaccines offering Blacklist. However, Significant some glimmer of
Slide 31: Bank One, Mauritius – Financial highlights
Bank One, Mauritius– Financial highlights Loans (Kshs Bn) Deposits (Kshs Bn) Highlights Dec 2020 Vs Dec 2019 -1% -19% 132 Reported PBT in KES 133 2019: 1.9bn 51 63 2020: -1.5bn Net Revenue in KES 2019: 4.2bn 2020: 3.6bn Cost/Income Dec-19 Dec-19 Dec-20 2019: 47% Dec-20 2020: 59% Assets (Kshs Bn) Equ
Slide 32: Economic Review - Rwanda
Economic Review - Rwanda GDP • 2020 GDP is estimated to have contracted by 0.2% and is projected to recover to 5.7% GDP growth in 2021. This recovery is expected to be driven by improvements in the business environment and investment in major growth sectors2. Economic Outlook Policy Measure on Impac
Slide 33: I&M Bank (Rwanda) Plc – Financial highlights
I&M Bank (Rwanda) Plc – Financial highlights Highlights Loans (Kshs Bn) Deposits (Kshs Bn) Dec 2020 Vs Dec 2019 +22% +32% Reported PBT in KES 21 27 2019: 1bn 19 23 2020: 0.9bn Net Revenue in KES 2019: 3.1bn 2020: 3.4bn Cost/Income 2019: 65% 2020: 57% Dec-19 Dec-20 NFI/Total Income Dec-19 Dec-20 2019
Slide 34: Non Banking Subsidiaries
Non Banking Subsidiaries Investor Presentation FY 2020
Slide 35: I&M Burbidge Capital Ltd and I&M Bancassurance Intermediary Ltd
I&M Burbidge Capital Ltd I&M Bancassurance Intermediary Ltd Revenue Revenue The Insurance agency The advisory business reported a 12% (KES contributed Kshs 91Mn to 5.9Mn) increase in revenues Group profitability Capital Raising Webinar IMBC in partnership with ISBI hosted its Annual Capital Raising
Slide 36: I&M Realty Limited
I&M Realty Limited New I&M Head Quarters Foundation Teams have relocated in phases into the new headquarters on 1st Parklands Avenue Sustainability Pandemic Relief The building generates an The company offered tenants rent estimated 100 kWh per year, which concessions as a relief from the covers a p
Slide 37: Part 5: Appendices
Part 5: Appendices Investor Presentation FY 2020
Slide 38: Group Overview: Our Purpose and Vision
Group Overview Group Overview Our Purpose “To be the partner for Growth for all our Stakeholders” Our Vision To Become A Company The First Choice Where Where Shareholder Are Where The Best People Customers Want To Do Happy With Their Want To Work Business, And Investment 37
Slide 39: Our Culture
Our Culture “Nurture A Culture Of Fairness To Our Partners” This is with regards to 3 key relationships: Employee - Employer Customer - Bank Shareholder - Group 38
Slide 40: Our Footprint
Our FootPrint Group Overview I&M Bank Limited, Kenya Branches 40 ATMs 56 Staff 1,143 Customers Over 140,000 Other Non Banking I&M Bank Tanzania I&M Bank (Rwanda) Entities Limited Bank One Limited Plc Staff 32 Branches 9 Branches 18 Branches 8 ATMs 9 ATMs 10 ATMs 31 Staff 421 Staff 373 Staff 203 Cust
Slide 41: I&M Holdings PLC (IMHP) Structure
I&M Holdings PLC (IMHP) Structure Group Overview I&M Holdings Plc BCR Investment Company Ltd 100% I&M Realty Ltd I&M Burbidge Capital Ltd I&M Capital Ltd Bank One Ltd I&M Bank Ltd Giro Ltd 100% 100% 50% 100% I&M Bank (Rwanda) Plc 100% 65% 54.47% I&M Burbidge Capital (U) Ltd I&M Bank (T) Limited I&M
Slide 42: I&M Nominees Ltd, I&M Capital Ltd, Giro Limited
I&M Nominees Ltd I&M Capital Ltd Giro Limited Incorporation Incorporation Incorporation I&M Nominees Ltd is a private Incorporated in 1963. Incorporated in 18 December limited company incorporated in 19 July 1993. 1992. Acquisition Acquisition Acquisition Formerly Giro Commercial The Company was pre
Slide 43: Disclaimer
Disclaimer GROUP STRUCTURE 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 t
Slide 44: Thank You
Thank You I&M is regulated by the Central Bank of Kenya