I&m Group Plc · NSEKE:IMH
I&m — Q1 2021 Earnings Presentation
31 slides from I&m's earnings presentation, Jun 9, 2021
Slide 1: Investor Presentation Q1 2021
Investor Presentation Q1 2021 9th June 2021
Slide 2: Agenda
AGENDA Part 1: Overview Part 2: Group Consolidated Performance: Q1 2021 Part 3: Subsidiary Performance Q1 2021 Part 4: Summary Investor Presentation Q1 2021
Slide 3: Steady growth recorded year on year
Steady growth recorded year on year, with a focus on maintaining strong OUR liquidity and capital resilience HISTORY Profit Before Tax Net Interest Income Non Funded Income Fee (less LPF) / Income (Kshs) (Kshs) (Kshs) 2,660m 4,313m 1,825m 23% +7% +23% -18% Absolute -8% Total Assets Customer Deposits
Slide 4: Strategic pillars and initiatives
Good progress on execution on our iMara2.0 strategy iMara 2.0 Strategy Aspiration Eastern Africa’s leading Financial Partner for Growth 1 Driving Business 2 Building a resilient 3 Optimising the Growth organisation operating model Strategic pillars and Key initiatives Key initiatives: 5) Funding and
Slide 5: Part 2: Group Consolidated Performance: Q1 2021
Part 2: Group Consolidated Performance: Q1 2021 Investor Presentation Q1 2021
Slide 6: I&M Holdings PLC – PAT up 13% Year on Year
I&M Holdings PLC – PAT up 13% Year on Year OUR YTD Mar-20 YTD Mar-21 Mar 21 vs Mar Comments Statement of Comprehensive 20 Income HISTORY Kshs Mn Kshs Mn Y-Y % Growth attributed to increased lending and a better Net Interest Income 3,497 4,313 23% cost of funds. NFI Growth has been subdued by the slo
Slide 7: I&M Holdings PLC – Steady balance sheet growth
I&M Holdings PLC – Steady balance sheet growth OUR Mar 21 vs Comments HISTORY Mar-20 Statement of Financial Position Dec-20 Mar-21 Mar 20 Kshs Mn Kshs Mn Kshs Mn Y-Y % Cash & Bank Balances 18,994 19,403 14,963 -21% The YoY growth in Investments and Loans & Investments & Advances is supported by the
Slide 8: Ratio Analysis: Capital adequacy remains strong
I&M Holdings PLC – Ratio Analysis: Capital adequacy remains strong Mar 20 Dec 20 Mar 21 Liquidity 48% 51% 47% Cost/Income Ratio 43% 42% 46% Net NPA 5% 4.2% 5% Gross NPA 12% 12% 12% Return on Equity 11% 12% 11% Return on Assets 2.0% 2.3% 2.0% Capital Adequacy Ratio 17% 19% 18% Loan to Deposit Ratio 7
Slide 9: 5 Year Trend Analysis - Value to Shareholders
5 Year Trend Analysis - Value to Shareholders NAV/Share vs Price/Share NAV per Share (Kshs) Return on 84 Equity Historical share prices have been indexed (0.5x) to reflect the Kshs 74 76 90 bonus issue 1:1, effected on 10 May 2019 57 80 57 70 +11% 60 50 +20% +3% 64 40 19% +8% 84 54 74 76 43 45 50 30
Slide 10: Recent Corporate Actions: Improved share liquidity and name change
Recent Corporate Actions: Improved share liquidity and name change Bonus Shares – Shareholders Dividend Payout – Despite Change of Name – The approved the bonus issue in the the challenging market Shareholders approved the ratio of One (1) ordinary share environment the Group paid a Company’s change
Slide 11: Part 3: Kenya & Subsidiary Performance - Highlights
Part 3: Kenya & Subsidiary Performance - Highlights Investor Presentation Q1 2021
Slide 12: I&M Bank Kenya – Steady year on year growth
I&M Bank Kenya – Steady year on year growth PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) -5% +6% +4% 2.2 145 154 203 213 2.1 Mar-20 Mar-21 Mar-20 Mar-21 Mar-20 Mar-21 Net Financial Revenue Assets (Kshs Bn) Equity (Kshs Bn) (Kshs Bn) +15% +9% +5% 4.4 4.8 283 47 54 270 ees/Cost Mar-20 Mar-21 Mar-2
Slide 13: I&M Bank Rwanda – A good performance and strong liquidity maintained
I&M Bank Rwanda – A good performance and strong liquidity maintained PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) +8% +5% +42% 0.26 0.28 22 24 33 23 Mar-20 Mar-21 Mar-20 Mar-21 Mar-20 Mar-21 Net Financial Revenue Assets (Kshs Bn) Equity (Kshs Bn) (Kshs Bn) +13% +36% +26% 0.9 52 5 6 0.8 39 es/Cos
Slide 14: I&M Bank Tanzania – A satisfactory performance in a difficult environment
I&M Bank Tanzania – A satisfactory performance in a difficult operating environment PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) -25% +4% +27% 0.12 15 16 14 18 0.09 Mar-20 Mar-21 Mar-20 Mar-21 Mar-20 Mar-21 Net Financial Revenue (Kshs Bn) Assets (Kshs Bn) Equity (Kshs Bn) +9% +7% -8% 23 25 4 4 0
Slide 15: Bank One Mauritius – A recovery in performance
Bank One Mauritius – A recovery in performance seen as the new business strategy is rolled out PBT (Kshs Bn) Deposits (Kshs Bn) Loans (Kshs Bn) +150 -13% 0.2 -20% 60 48 140 122 -0.4 Mar-20 Mar-21 Mar-20 Mar-21 Mar-20 Mar-21 Net Financial Revenue Assets (Kshs Bn) Equity (Kshs Bn) (Kshs Bn) -9% -2% -3
Slide 16: Part 4: Summary
Part 4: Summary Investor Presentation Q1 2021
Slide 17: Good progress on execution and roll out of key strategic initiatives
Good progress on execution and roll out of key strategic initiatives Launch of Wealth Management Services Digital lending (kamilisha) went live in March 2021 Pilot launch of the I&M On the Go project for Corporate and Business Customers Enterprise Data Warehouse connection is at preliminary
Slide 18: The acquisition of Orient Bank Limited was completed on 30th April 2021
The acquisition of Orient Bank Limited was completed on 30th April 2021 I&M Group completed the acquisition of 90% of the shareholding of Orient Bank Ltd, Uganda OBL was founded in 1993 and currently is the 12th largest bank in Uganda out of 25 banks. Top quartile position on organizational health.
Slide 19: The Group's outlook is positive
The Group’s outlook is positive Performance The Group will continue to focus on delivery of quality earnings and shareholder value, underpinned by strong capital and liquidity management. Regional Business Focus will be on growing regional businesses as the Group expands in new Growth markets in Eas
Slide 20: Part 5: Appendices
Part 5: Appendices Investor Presentation Q1 2021
Slide 21: Banking Subsidiary Performance Highlights
Banking Subsidiary Performance Highlights I&M KE Highlights I&M RW Highlights I&M TZ Highlights Bank One Highlights Dec 2019 Mar 2021 Vs Mar 2020 Mar 2020 Vs Mar 2021 Mar 2021 Vs Mar 2020 Mar 2021 Vs Mar 2020 Vs Reported PBT in KES Reported PBT in KES Reported PBT in KES Reported PBT in KES 2020: 2.
Slide 22: 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 21
Slide 23: 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 22
Slide 24: Our Footprint
Our FootPrint Group Overview I&M Bank Limited, Kenya Branches 40 ATMs 56 Staff 1,143 Customers Over 140,000 Orient Bank Limited Uganda I&M Bank Tanzania Branches 14 I&M Bank (Rwanda) Limited Bank One Limited ATMs 22 Plc Branches 9 Branches 8 Staff 340 Branches 18 Customers Over 70,000 ATMs 10 ATMs 3
Slide 25: Group Legal Organization
Group Legal Organization The I&M Group comprises of 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 I&M Bank (Rwanda) Plc Orient Bank Ltd 100% 65% 100% 50% 100% 54.47% 90% I&M Burbidge Capital (U) Ltd Investment & Mor
Slide 26: Non Banking Subsidiaries
Non Banking Subsidiaries Investor Presentation Q1 2021
Slide 27: I&M Foundation and I&M Burbidge Capital Ltd
I&M Foundation I&M Burbidge Capital Ltd Set Up Incorporation The Group set up I&M Foundation Acquisition in 2019 which spearheads the Incorporated in May 2010 and is Group’s shared growth agenda in domiciled in the Republic of Kenya. I&M Group acquired 65% the areas of Environment and shareholding i
Slide 28: I&M Realty Ltd and I&M Bancassurance Intermediary Ltd
I&M Realty Ltd I&M Bancassurance Intermediary Ltd Incorporation Incorporation Regulation Incorporated on 30th October 2014 Incorporated on 23 July 2014 as a The company is regulated by as a limited liability company in limited liability company in Kenya Insurance Regulatory Authority Kenya. Commence
Slide 29: I&M Nominees Ltd, I&M Capital Ltd and 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 30: 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 31: Thank You
Thank You I&M is regulated by the Central Bank of Kenya and the Capital Markets Authority of Kenya