I&m Group Plc · NSEKE:IMH
I&m — Q3 2022 Earnings Presentation
44 slides from I&m's earnings presentation, November 2022
Slide 1: Investor Presentation September 2022
OUR VALUES INTEGRITY INVESTOR PRESENTATION TRUST RESPECT 2022 | SEPTEMBER INNOVATION WE ARE ON YOUR SIDE COURAGE 1 Classification: Public
Slide 2: September 2022 | Key Highlights
September 2022 | Key Highlights 29% YoY growth in PBT driven by positive performance in all income lines; 74% of the Groups transactions were executed through digital channels with 70% digitally active customers. I&M Bank was recognized amongst the best in Bank operations category at the Sustainable
Slide 3: September 2022 | Key Highlights
September 2022 | Key Highlights KENYA RWANDA TANZANIA MAURITIUS UGANDA I&M Bank Ltd I&M Bank (Rwanda) PLC I&M Bank (T) Ltd Bank One Limited I&M Bank (Uganda) Ltd ✓ 227,000+ customers ✓ 75,000+ customers ✓ 25,000+ customers ✓ 30,800+ customers ✓ 41,600+ Customers ✓ 39 Branches ✓ 18 Branches ✓ 8 Branc
Slide 4: Aspiration and Initiatives
iMara 2.0 | We are in year 2 of the Group’s 3-year strategy 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 Customer Experience Cultural Transformation
Slide 5: iMara 2.0 | Three-year strategic aspiration & key focus areas
iMara 2.0 | Our 3-year strategic aspiration & key focus areas in motion… KEY FOCUS AREAS OUR TARGETS Customer Base Growth Ecosystem Banking 74% Digitally Partnerships Active Customers FinTech and other strategic partnerships STRATEGIC ASPIRATION Group Operating Model Roll out and embedding of the Gr
Slide 6: Group Strategy iMara 2.0 Update
Group Strategy iMara 2.0 Update 6 Classification: Public
Slide 7: Regional Expansion | 19% PBT contribution from regional subsidiaries
Regional Expansion | 19% PBT contribution from regional banking subsidiaries PILLAR 1: Driving Business Growth Profit before tax Total Assets KENYA 3% RWANDA 8% 6% 2% 8% 2% TANZANIA 7% KENYA KES RWANDA 13% KES UGANDA 10.4Bn TANZANIA 429Bn UGANDA MAURITIUS 73% 78% NON-BANKING SUBSIDIARIES & ELIMINATI
Slide 8: Revenue Diversification | Steady growth in all income lines
Revenue Diversification | Steady growth in all our income lines PILLAR 1: Driving Business Growth Operating Income Breakdown of Non-Interest Income 38% 31% 35% 40% 56% 59% 42% 69% 65% 21% 19% 62% 22% 22% 18% Sep-20 Sep-21 Sep-22 Sep-20 Sep-21 Sep-22 Net Interest Income Non-Interest Income Fees and C
Slide 9: Digitization | Continued value creation through digital channels
Digitization | Continued value creation through our digital channels PILLAR 1: Driving Business Growth Digital Transactions Value of Digital Transactions in KES Mn % Digitally Active Customers 50% 25% 75% 38% 208% 0% 100% 1,170 70% 74% of I&M Group’s transactions were 32% executed digitally as of Se
Slide 10: Extending Retail Lending | Exponential growth in retail lending
Extending Retail Lending | Exponential growth in our retail lending portfolio PILLAR 1: Driving Business Growth Unsecured Personal Loans - KES Bn Unsecured Mobile Loans - TZS Bn 1.52 17.9 48% 1.03 842% 79% 0.58 124% 1.9 0.85 Mar-22 Jun-22 Sep-22 Mar-22 Jun-22 Sep-22 Launched in October 2021 Launched
Slide 11: Revenue Diversification | Strategic initiatives yield strong results
Revenue Diversification | Our strategic initiatives continue to yield strong results PILLAR 1: Driving Business Growth Total Operating Income Total Loans and Advances (KES Bn Total Deposits (KES Bn) 25.0 231.2 308.0 288.7 207.6 +24% +11% 252.8 +7% 20.2 185.7 +20% +12% +14% 16.8 Sep-20 Sep-21 Sep-22
Slide 12: Rebalancing deposit book and maintaining strong liquidity
PILLAR 2: Building a ……| as we continued to rebalance our deposit book and maintain strong liquidity Resilient Organisation Customer Deposit Mix Customer Deposits by Segments CASA in KES Bn 9% 129 64% 62% 58% 15% 42% 111 36% 38% 42% 34% Premium Corporate & IB Sep-20 Sep-21 Sep-22 Sep-21 Sep-22 Busin
Slide 13: Strong liquidity and capital positions across subsidiaries
| The Group maintains strong liquidity and capital positions across all subsidiaries PILLAR 2: Building a Resilient Organisation Liquidity Ratios Capital Adequacy 62% 21% 20% 20% 18% 6.5% 5.5% 17% 42% 3.5% 2.0% 7.5% 40% 42% 39% 32% 20% 22% 12% 14.5% 14.5% 14.5% 15.0% 39% 12.5% 20% 20% 20% 20% Kenya
Slide 14: Well diversified loan portfolio
| We continue to maintain a well diversified portfolio… PILLAR 2: Building a Resilient Organisation Loans & Advances by Segment Sectoral Distribution of Loans & Advances Mining and Quarrying 1% 1% 5% 5% Energy and Water 1% 1% Agriculture 4% 3% Tourism,Restaurant and Hotels 5% 6% 19% 6% Transport and
Slide 15: Improved asset quality
| …with focused efforts towards improved asset quality. PILLAR 2: Building a Resilient Organisation Gross NPA Net NPA Cost of Risk Coverage Ratio 1.9% 57% 11% 3% 10% 1.8% 53% 2% Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 15 Classification: Public
Slide 16: Synergies amongst Group subsidiaries bear fruit
| …Our concerted efforts to enhance synergies amongst Group subsidiaries continues to bear fruit Cross border business development initiative Cost to Income Ratio 48% 45% 45% $2.3M(c.KES 270M) Sep-20 Sep-21 Sep-22 Revenue earned through cross border business development initiatives Improved CIR attr
Slide 17: Group Financial Highlights
Group Financial Highlights 17 Classification: Public
Slide 18: September 2022 | 29% growth in PBT
September 2022 | 29% growth in PBT… +29% 10,434 8,095 2,660 1,189 778 2,177 425 105 Sep 21 Other costs Impairment Staff costs Share of JV profit Net interest Non funded Sep 22 charge income income 18 Classification: Public
Slide 19: Supported by strong growth momentum
September 2022 | … supported by strong growth momentum Net Interest Income (KES) Non-Interest Income(KES) Digitally Active Customers 16,165m 8,844m +16% +43% 70% Net Loans & Advances (KES) Customer Deposits (KES) Transactions from Digital Channels 231bn 308bn +11% +7% 74% Cost/Income Ratio Return on
Slide 20: Subsidiary Performance Highlights
Subsidiary Performance Highlights 20 Classification: Public
Slide 21: Kenya | Economic Review
Kenya | Economic Review Kenya GDP Growth (%) Macro-economic Outlook 7.5% 5.4% 5.1% 5.5% ▪ GDP expected to slowdown to 5.4% in 2022 and 5.1% in 2023; ▪ Economic performance in Q2 2022 at 5.2% (Q1 2022: 6.8%), with economic momentum driven by financial services, transport, whole and retail sectors; ▪
Slide 22: Kenya | Growth trajectory in line with strategic initiatives
Kenya | Growth trajectory in line with strategic initiatives P&L (KES Mn) Operating Income Loan Loss Provisions Profit Before Tax 3,261 18,040 8,104 +17% 2,636 +24% +30% 6,255 15,206 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 ▪ Increase in profitability driven by income growth and cost containment –
Slide 23: Kenya | Balance Sheet
Kenya | Growth trajectory in line with strategic initiatives Balance Sheet (KES Mn) Total Assets Net Loans & Advances Customer Deposits 176,523 228,747 307,762 +4% +10% +3% 294,916 221,635 160,536 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 Key Ratios Sep-21 Sep-22 ▪ 10% growth in Loans and Advances s
Slide 24: Tanzania | Economic Review
Tanzania | Economic Review Tanzania GDP Growth (%) Macro-economic Outlook 6.2% 5.2% ▪ GDP expected to slowdown to 4.5% in 2022 and improve to 5.2% in 2023; 4.9% 4.5% ▪ The economy grew by 5.4% in Q1 2022 despite external shocks driven by improvements in agriculture, construction, mining and manufact
Slide 25: Tanzania | Focused growth as macro environment stabilises
Tanzania | Focused growth on business opportunities as macro environment stabilises P&L (KES Mn) Operating Income Loan Loss Provisions Profit Before Tax 253 121 +26% 1,476 +243% 232 +9% 1,171 35 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 ▪ Operating income supported by strong growth in non-funded inc
Slide 26: Tanzania | Balance Sheet
Tanzania | Focused growth on business opportunities as macro environment stabilises Balance Sheet (KES Mn) Total Assets Net Loans & Advances Customer Deposits 19,220 32,192 24,158 +19% +12% +24% 19,424 26,996 17,192 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 ▪ 19% y/y growth in Total Assets driven by
Slide 27: Rwanda | Economic Review
Rwanda | Economic Review Rwanda GDP Growth (%) Macro-economic Outlook 10.9% ▪ GDP expected to slowdown to 6.7% in 2023; 6.8% 6.7% 7.0% ▪ Rwandan Economy grew by 7.5% in Q2 2022 driven by strong performance in the industry and services sectors; ▪ Inflation remains a key concern globally and locally;
Slide 28: Rwanda | Macro environment supportive of growth
Rwanda | Macro environment remains supportive of business growth and strategic initiatives P&L (KES Mn) Operating Income Loan Loss Provision Profit Before Tax 1,140 3,398 309 +28% +93% 914 +25% 2,658 160 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 ▪ Operating Income grew by 28% YoY driven by increase
Slide 29: Rwanda | Balance Sheet
Rwanda | Macro environment remains supportive of business growth and strategic initiatives Balance Sheet (KES Mn) Total Assets Net Loans & Advances Customer Deposits 56,822 27,660 33,534 47,334 +20% +17% +17% 23,603 28,696 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 ▪ Continued growth in Total Assets
Slide 30: Uganda | Economic Review
Uganda | Economic Review Uganda GDP Growth (%) Macro-economic Outlook 6.7% 5.8% 5.9% ▪ GDP growth projections reduced to 2.5% in 2022. Recent Ebola outbreak could have knock on effects on the economy and supply chain disruptions. 2.5% ▪ Inflation increased rose to 10% in September 2022 (highest leve
Slide 31: Uganda | Focused integration and cross border collaboration
Uganda | Focused integration and cross border collaboration starting to bear fruit P&L (KES Mn) Operating Income Loan Loss Provisions PBT 1,278 517 210 1,061 -80% +135% 20% Sep-21 Sep-22 -104 -599 Sep-21 Sep-22 Sep-21 Sep-22 • Operating income growth supported by 26% increase in net interest income
Slide 32: Uganda | Balance Sheet
Uganda | Focused integration and cross border collaboration starting to bear fruit Balance Sheet (KES Mn) Net Loans & Advances Customer Deposits Total Assets 21,607 26,697 6,959 +16% +24% +15% 5,634 22,939 18,755 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 ▪ Growth in Loans and advances supported by d
Slide 33: Mauritius | Economic Review
Mauritius | Economic Review Mauritius GDP Growth (%) Macro-economic Outlook 6.1% 5.4% ▪ GDP expected to improve to 6.1% in 2022, on the back of recovery in the economy. 4.0% 4.2% ▪ The Mauritius economy grew by 15.9% in Q2 2022 largely driven by manufacturing, construction, accommodation and food se
Slide 34: Mauritius | Macro-economic environment improving
Mauritius | Macro-economic environment improving and setting stage for business growth P&L (KES Mn) Loan Loss Provisions Profit Before Tax Operating Income 2726 1,131 2579 792 -5% -74% -52 -30% -200 Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 ▪ Operating income declined due to one-off gain from the sa
Slide 35: Mauritius | Balance Sheet
Mauritius | Macro economic improving and setting stage for business growth Balance Sheet (KES Mn) Total Assets Net Loans & Advances Customer Deposits 116,515 56,546 115,586 95,265 94,616 53,334 +1% +6% -1% Sep-21 Sep-22 Sep-21 Sep-22 Sep-21 Sep-22 ▪ Loans and advances benefitted from growth on onsho
Slide 36: Group Summary
Group Summary 36 Classification: Public
Slide 37: Summary Highlights | Strong and consistent financial performance
Summary Highlights | Strong and consistent financial performance in Q3 2022 Profit Before Tax Customer Deposits Net Loans & Advances Return on Equity 10.4 bn 308bn 231bn 14% +29% +7% +11% +2% 37 Classification: Public
Slide 38: Group Outlook
Group Outlook 38 Classification: Public
Slide 39: iMara 2.0 | Initiatives to achieve our Targets
iMara 2.0 | We continue to focus on various initiatives to achieve our Targets KEY FOCUS AREAS OUR TARGETS Customer Base Growth Ecosystem Banking 74% Digitally Partnerships Active Customers FinTech and other strategic partnerships STRATEGIC ASPIRATION Group Operating Model Roll out and embedding of
Slide 40: Appendices
Appendices 40 Classification: Public
Slide 41: I&M Foundation is building a roadmap for ESG initiatives
PILLAR 2 Building a | I&M Foundation is building a roadmap for our ESG initiatives Resilient Organisation Education & Skills • KES 28Mn - Supporting education and skills Empowerment empowerment • 111 - Number of high school scholarships provided Economic through the I&M Foundation fund Empowerment •
Slide 42: Some of the initiatives driving business growth
| Some of the initiatives driving business growth PILLAR 1: Driving Business Growth Multicurrency Campaign Visa Infinite Credit Card Campaign Jumia Offer 10% on value Kes 300 Cap below 3k Value above 3k Customers who purchase Top 2 customers to have: the MCY cards in Nov & Dec 22 to get free travel
Slide 43: Disclaimer
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 s
Slide 44: Thank You
THANK YOU WE ARE ON YOUR SIDE I&M Group Plc 1 Park Avenue 1st Parklands P.O. Box 30238 – 00100 Tel: +254 (0)20 3221000 investor-relations@imgroup-plc.com 44 Classification: Public