I&m Group Plc · NSEKE:IMH
I&m — Q3 2021 Earnings Presentation
46 slides from I&m's earnings presentation, December 2021
Slide 1: We Are On Your Side
Integrity Respect Trust Innovation Courage I&M Group PLC We Are On Your Side 1
Slide 2: 2021 | December
2021 | DECEMBER I&M Group PLC 2
Slide 3: How Do You Write An Annual Report For A Small Business?
How Do You Write An Annual Report For A Small Business? A good annual report will include: • The company's name, address, and type of business it does. 20 % • An annual report letter to the shareholders, written by the owner or director of the company. • A balance sheet, which shows your company's c
Slide 4: Group footprint across East Africa
KENYA I&M Bank LIMITED ✓ 141,000+ customers 89 Branches UGANDA ✓ 40 Branches I&M Bank (Uganda) Ltd* ✓ 56 ATMs ✓ 71,000+ Customers ✓ 1,143 staff ✓ 14 Branches ✓ 22 ATMs 128 ATMs ✓ 340 staff * Formerly Orient Bank Ltd TANZANIA I&M Bank (T) Limited ✓ 16,200+ customers ✓ 8 Branches Over 300k RWANDA ✓ 9
Slide 5: Our Company & Group Results represents all entities
Our Company & Group Results I&M Group PLC represents all entities BCR Investment Co. Ltd 100% I&M Realty I&M Burbidge Capital I&M Capital Ltd Bank One Ltd I&M Bank Ltd I&M Bank (Rwanda) Plc I&M Bank (Uganda) Ltd* Ltd Ltd 100% 50% 100% 54.47% 90% 100% 65% I&M Burbidge Capital (U) Investment & Mortgag
Slide 6: Bank & Group Results structure
I&M Group Plc I&M Bank Ltd 100% Bank & Group Results I&M Bank (T) Limited I&M Bancassurance Intermediary Ltd Kenya 100% Tanzania 77.80% Youjays Insurance Brokers Limited 100% I&M Group PLC I&M Group Plc is listed on the Nairobi Securities Exchange (NSE) and 6 I&M Bank (Rwanda) Plc is listed on the R
Slide 7: Sub Saharan Africa and East Africa overview
2021 SSA GDP Growth (%) Sub Saharan Overview • SSA projected to grow by 3.7% in 2021 and 3.8% in 2022 supported by improvement in global 3.7% 3.8% trade and commodity prices as well as the agricultural sector. 3.1% • While average inflation has been slightly higher in 2021 in comparison to previous
Slide 8: 53% of I&M Kenya staff are fully vaccinated
53% of I&M Kenya staff are fully vaccinated while 14% are partially vaccinated awaiting 2nd dose. Across the Group 65% of our staff have received their 1st dose enabling business operation to resume smoothly. Source: COVID-19 Data Explorer - Our World in Data I&M Group PLC 8
Slide 9: Group growth highlights
Profit Before Tax Customer Deposits Net Loans & Advances Return on Kshs Kshs Kshs Equity +25% +14% +12% I&M Group PLC 9
Slide 10: How Do You Write An Annual Report For A Small Business?
How Do You Write An Annual Report For A Small Business? A good annual report will include: • The company's name, address, and type of business it does. 20 % • An annual report letter to the shareholders, written by the owner or director of the company. • A balance sheet, which shows your company's c
Slide 11: Aspiration, strategic pillars and initiatives
Aspiration Eastern Africa’s leading Financial Partner for Growth 1. Driving Business Growth 2. Building a Resilient Organisation 3. Optimising the operating model Strategic Pillars And initiatives A B C D Enablers Customer Experience Cultural Transformation Strategic Partnerships Data Analytics Desi
Slide 12: Key Focus Areas
Key Focus Areas Aspiration Omni Channel Implementation (‘On the Go’) Leading to full digital distribution capability ROE +21% 01 Innovation Segment Expansion Digital Orchestrator MSME and Retail model ecosystems Business 02 PBT +20Bn Growing Regional Emerging Growth Business Regional Subsidiary Cust
Slide 13: Strategy Performance Highlights
Strategy Performance Highlights
Slide 14: Kenya launches I&M On The Go
of I&M Group’s transactions were ~76% executed digitally as of Q3 2021, with a transaction value of ~Kes 400Bn Kenya Launches I&M On The Go • ‘On the Go (OTG)’ - the Bank’s redesigned app Target digital transactions at Ongoing Innovation and web platform allows customers to enjoy our 90% Further lau
Slide 15: Other ongoing digital initiatives
Other ongoing Digital Initiatives: Tanzania Kenya Mauritius Rwanda Mobile Lending Automated Universal Payment Solution Digital On-Boarding (IMT/Airtel/YABX) Kamilisha Lending Platform (POP) Solution The fully digital on-boarding Launched – September Launched in October Launched in September 2021 202
Slide 16: MSME disbursement trend
Ganza na I&M SME banking product is tailored towards the microbusinesses, small-and medium sized enterprises (MSMES) is showing consistent growth MSME Disbursement trend – RWF ’Bn 1,700+ 12.7 New MSME Customers 11.0 9.8 9.0 8.3 7.4 7.2 6.3 5.0 5.5 3.5 3.3 3.7 3.8 1.9 2.3 1.2 Kes 137 Mn Average Custo
Slide 17: Wealth Management
Wealth Management Product Pipeline: Developing Value Added Services through Partnerships: New Product Offering July 2021 • Offshore Products: Collaboration between I&M Capital Launch of Wealth and Bank One to provide access to offshore products Management Services for potential customers. • Money Ma
Slide 18: Customer satisfaction and digital channel transactions
Customer Satisfaction % of transactions through digital channel NPS Score Mobile Services, 14% 2021 74% Cards , 8% 2020 34% ATM Deposits, 3% 2019 47% Internet 0% 10% 20% 30% 40% 50% 60% 70% 80% Banking, 74% YoY Growth to Sept 2021 ✓ Our revamped strategy NPS score improved from 34% in 2020 to 74% in
Slide 19: Deposits growth and distribution
Our interest expense has benefitted from the strong growth in CASA deposits Deposits Distribution Segmental Distribution of Deposits Deposits (Kshs Bn) +14% 14% 253 288 Business, 14% Personal, 12% growth in Total Deposits +5% 170 attributed to Group’s High Cost 162 campaign to CASA Premium, 42% Corp
Slide 20: Liquidity ratios by subsidiary
Kenya Uganda Rwanda 60% 70% 50% 57% 55% 56% 58% 47% 47% 45% 45% 60% 50% 53% 60% 53% 51% 51% 50% 40% 39% 40% 40% 30% 20% 20% 20% 10% 0% 0% 0% Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Sep-20 Dec-20 Mar-21 Jun-21 Sep-21 Liquidity Ratio Regulatory Threshold Liquidity Ratio R
Slide 21: Community pillars: environment, education, empowerment
Environment Conservation Pillar Education and Skills Development Pillar Economic Empowerment Pillar ▪ 16 students received scholarship to pursue ▪ Increased capacity building and HH income for ▪ 90 solar lanterns & 43 Energy saving jikos their undergraduate degree courses at 579 Masai women to creat
Slide 22: Education and economic empowerment pillars
Education and Skills Development Pillar Economic Empowerment Pillar ▪ I&M Rwanda has sponsored annual school fees for 5 students; Promoted ▪ In partnership with CIEL Foundation, Bank One supported the NGO Caritas Solitude in a food relief program; ▪ The Bank also supported the Rwanda BookMobile init
Slide 23: Process efficiencies and group synergies
Process Efficiencies Leveraging Group Synergies Increased investments in infrastructure to Relaunch of the cross-border instant payment platform to support our customers support: regional business operation/aspirations • Group’s digital transformation strategy • Standardize operations, systems and p
Slide 24: Group Financial Highlights
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Slide 25: Statement of Comprehensive Income
YTD Sep-20 YTD Sep-21 Sep 21 vs Sep 20 Comments Statement of Comprehensive Income Kshs Mn Kshs Mn Y-Y % Growth in income from government securities and Net Interest Income 10,401 13,988 34% decline in interest expense as a result of increased low cost deposits. Non-Funded Income 6,409 6,184 -3% Marg
Slide 26: Statement of Financial Position
Comments Statement of Financial Sep-20 Dec-20 Sep-21 Sep 21 vs Sep 20 Position Kshs Mn Kshs Mn Kshs Mn Y-Y % Cash & Bank balances increase was partly attributed to Cash & Bank Balances 14,869 19,403 24,568 65% the balances in the Uganda entity. Loans & Advances growth on the back of lending to Inves
Slide 27: Loans and sectorial distribution
Loans (Kshs Bn) Loans Sectorial Distribution Mining and Quarrying +12% Financial Services 1% +7% 4% Agriculture Energy and Water 208 4% 1% Tourism, Restaurants 186 174 and Hotels 5% Transport and Manufacturing Communication 27% 6% Building and Construction 8% Personal/Household 11% Trade 17% Sep-19
Slide 28: NPLs, loan loss provisions and coverage
Gross NPLs (Kshs Bn) Loans Loss Provisions (Kshs Bn) Coverage Ratio +14% +36% -6% +1% 53% 24 +15% 47% 23 23 +28% 12 34% 11 8 Sep-19 Sep-20 Sep-21 Cost of Risk +18% +55% 1.8% Sep-19 Sep-20 Sep-21 1.5% 11% 1.0% Gross NPA 14% 12% Sep-19 Sep-20 Sep-21 Net NPA 5.2% 4.0% 3.2% Sep-19 Sep-20 Sep-21 I&M Grou
Slide 29: Key ratios
Sep-20 Dec-20 Sep-21 Capital & Liquidity Liquidity 47% 51% 49% Capital Adequacy Ratio 16% 19% 16% Loan to Deposit Ratio 73% 71% 72% Efficiency Cost/Income Ratio 45% 42% 48% Asset Quality Net NPA 4.0% 4.2% 3.2% Gross NPA 12.2% 12.6% 10.9% Cost of Risk 1.5% 1.3% 1.8% Returns Return on Equity 9.6% 12.4
Slide 30: Group PBT and asset contribution
I&M Group Sept 2021 PBT Contribution I&M Group Sept 2021 Asset Contribution I&M Kenya I&M Rwanda Bank One I&M Kenya I&M Rwanda I&M Tanzania 77% 6% 7% 73% 12% 7% I&M Tanzania I&M Uganda KSHS ‘Bn I&M Uganda KSHS ‘Bn 6.3 295 0.50 47 2% -0.2% 0.57 5% 27 0.18 21 -0.02 Balance: Other Subsidiaries & elimin
Slide 31: Subsidiary Performance Highlights
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Slide 32: Kenya GDP and outlook
GDP Kenya GDP Growth (%) 6.0% GDP growth expanded at the fastest rate in over 10 years by 10% in Q2 2021. 5.6% 5.0% Double-digit expansions in both merchandise exports and imports in July–August hint at healthy foreign and domestic demand conditions for Q3 2021. -0.3% Economic Outlook 2019 2020 2021
Slide 33: I&M Kenya performance
PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) +9% +5% -19% +6% +2% 7.6 161 221 147 211 6.3 139 6.1 High Cost 152 153 CASA 58 69 Sep-19 Sep-20 Sep-21 Sep-19 Sep-20 Sep-21 Sep-20 Sep-21 Net Operating Income (Kshs Bn) Assets (Kshs Bn) Equity (Kshs Bn) +17% +8% +10% +2% +5% -2% 15.1 295 48 50 261 273
Slide 34: Tanzania GDP and outlook
GDP Tanzania GDP Growth (%) 7.0% The real GDP projected to grow 4.1% in 2021 and 5.8% in 2022, due to improved performance of the tourism sector and the reopening of trade corridors1. 4.8% 5.1% 4.0% 2019 2020 2021E 2022F Economic Outlook Tanzania’s economic outlook is positive supported by economic
Slide 35: I&M Tanzania performance
PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) +1% +13% +22% -1% +2% 0.2 0.2 17 19 0.2 15 15 16 6 High Cost 5 14 CASA 11 Sep-19 Sep-20 Sep-21 Sep-19 Sep-20 Sep-21 Sep-20 Sep-21 Net Operating Income (Kshs Bn) Assets (Kshs Bn) Equity (Kshs Bn) +3% +11% +19% 0% +8% +8% 1.1 1.2 27 4.5 1.1 24 22 3.8 3.
Slide 36: Uganda GDP and outlook
GDP Uganda GDP Growth (%) 7.7% Ugandan economy is expected to grow by 3.1% in the Financial Year 2020/21 and peak at 7.0% in the medium term. This growth will be mainly driven by expected increase in 4.7% 5.1% production and productivity in agriculture and manufacturing1. Economic Outlook -0.8% 2019
Slide 37: I&M Bank Uganda rebranding and integration
▪ Change of name and rebranding of Orient Bank to I&M Bank Uganda has been completed; ▪ Engagement with existing and potential Group customers in Uganda as we align the entity with our Group strategy. ▪ Upgrading infrastructure to enhance systems to I&M Group standards. ▪ Inculcating the Group’s cul
Slide 38: Rwanda GDP and outlook
GDP Rwanda GDP Growth (%) YoY Q2 2021, Rwanda’s economy expanded by 21%. The main sectors that contributed to 9.5% the overall GDP growth are services sector, agriculture sector and industry sector which 7.0% grew by 24%, 7% and 30% respectively. 5.1% The sustained economic recovery is supported by
Slide 39: I&M Rwanda performance
PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) +45% +14% +2% +9% -14% 0.9 23 24 29 20 26 0.7 5 0.6 High Cost 5 CASA 22 24 Sep-19 Sep-20 Sep-21 Sep-19 Sep-20 Sep-21 Sep-20 Sep-21 Net Operating Income (Kshs Bn) Assets (Kshs Bn) Equity (Kshs Bn) +12% +30% +1% +15% +19% 47 +9% 6.5 42 2.3 2.7 36 5.0 2.
Slide 40: I&M Rwanda wins Product Innovation of the Year
On the October 21, 2021, I&M Bank (Rwanda) won the “Product Innovation of the Year – Gold Award during the Global Finance Awards 2021 by the SME Finance Forum in partnership with International Finance Corporation (IFC) The award was given to I&M Rwanda based on the SPENN Mobile App that has enabled
Slide 41: Mauritius GDP and outlook
GDP Mauritius GDP Growth (%) 6.7% The economy is expected to rebound in 2021 (+6.6%), fueled by the construction sector and 5.0% 3.0% public investment, as well as by a recovery in the tourism industry, with the country opening up for vaccinated guests from 1st October 20211. The IMF forecasts Mauri
Slide 42: Bank One performance
PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) -199% +190 -18% -29% 1.3 1.1 74 -12% 135 61 28 53 High Cost 95 25 107 CASA 71 -1.3 Sep-19 Sep-20 Sep-21 Sep-19 Sep-20 Sep-21 Sep-20 Sep-21 Net Operating Income (Kshs Bn) Assets (Kshs Bn) Equity (Kshs Bn) +25% +3% 0% -11% -27% -3% 3.2 159 9.1 9.4 9.4 2
Slide 43: Q3 2021 summary and focus
Steady performance in Q3 2021 driven by both Focus on growing regional business and aligning all loan growth and deposit mobilisation. entities with the Group’s strategic focus. Continued investment in digital innovation and Entrench the Bank’s services in the customer’s operations platforms in our
Slide 44: How Do You Write An Annual Report For A Small Business?
How Do You Write An Annual Report For A Small Business? A good annual report will include: • The company's name, address, and type of business it does. • An annual report letter to the shareholders, written by the owner or director of the company. 20 % • A balance sheet, which shows your company's c
Slide 45: 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 46: Thank You
Thank You I&M GROUP PLC 1 PARK AVENUE 1ST PARKLANDS P.O. BOX 30238 – 00100 TEL: +254 (0)20 3221000 Investor-Relations@imgroup-plc.com I&M Group PLC 46