I&m Group Plc · NSEKE:IMH
I&m — Investor Presentation (2023)
39 slides from I&m's investor presentation, Mar 30, 2023
Slide 1: FY 2022 Investor Presentation
FY 2022 We Are On Your Side INVESTOR PRESENTATION INTEGRITY COURAGE TRUST RESPECT INNOVATION Classification: Public
Slide 2: What did 2022 look like?
We Are On Your Side What did 2022 look like? Classification: Public
Slide 3: Despite economic recovery, 2022 presented macro-economic challenges
Despite economic recovery....2022 presented macro-economic challenges.... Economic Tailwinds Economic Headwinds Full recovery hampered by rising cost of living Economic recovery in East Africa projected at emanating from an increase in commodity 4.8% as business activities improved across the prices
Slide 4: Our growing geographical footprint offered strong customer proposition
….Our growing geographical footprint offered strong customer proposition KENYA I&M Bank Limited ✓ 227,000+ customers UGANDA ✓ 39 Branches Over 350K I&M Bank Uganda Limited ✓ 55 ATMs Customers ✓ 1,217 staff ✓ 75,000+ Customers ✓ 11 Branches I&M Burbidge Capital Limited ✓ 13 ATMs ✓ Investment Advisory
Slide 5: On track to meet strategic aspirations on strong 2022 performance
..and we remain on track to meet our strategic aspirations on the back of strong performance in 2022 STRATEGY FINANCIALS *Net Promoter Score - 62% (2021 – 74%) Total Assets KES 437Mn 5% Revenue from new business – 9% (2021 – 7%) Net Loans and Advances KES 239Mn 13% 14% Regional Banking Subsidiary PB
Slide 6: iMara 2.0: final year of the Group's 3-year strategy
iMara 2.0 | We are in the final year of the Group’s 3-year strategy Aspiration Eastern Africa’s Leading Financial Partner for Growth initiatives Strategic Pillars & 1. Driving Business Growth 2. Building a Resilient Organisation 3. Optimising the operating model Enablers Customer Experience Cultural
Slide 7: How have we achieved this?
We Are On Your Side How have we achieved this? Classification: Public
Slide 8: Defending our Corporate Strength
Defending our Corporate Strength Pillar 1: Growth Steady growth in Corporate & Institutional banking Corporate & Institutional Banking income since embarking on the iMara 2.0 strategy even as we diversify our revenue streams Total Operating Income (KES Bn) Maintained leadership in trade finance; ✓ O
Slide 9: Building our Personal and Business Banking Space
Building our Personal and Business Banking Space Pillar 1: Growth Business & Personal Banking Digital Unsecured Personal Loans – Kes Mn Operating Income KES Bn 2,068 21% 1730% 15.3 30% 12.6 9.7 113 FY 2020 FY 2021 FY 2022 Dec-21 Dec-22 Launched in Oct 2021 ✓ Significant growth in operating income fr
Slide 10: Leading to Steady growth in total income
Leading to Steady growth in total income Pillar 1: Growth Operating Income (KES Bn) Operating income by Breakdown by Business Segments 36 18% 23% 20% 30% 30 22% 13 43% 24 40% 43% 9 8 40% 30% 34% 21 23 16 FY 2020 FY 2021 FY 2022 Other Income FY 2020 FY 2021 FY 2022 Personal & Business Banking Net Int
Slide 11: And a diversified balance sheet
And a diversified balance sheet Pillar 1: Growth Total Loans and Advances (KES Bn) Sectoral Distribution of Loans & Advances 13% Mining and quarrying 1% 1% 12% 211 239 1% 187 Electricity and water 1% Finance and insurance 2% 3% FY 2020 FY 2021 FY 2022 Agriculture 4% 5% Building and construction 6% 6
Slide 12: While maintaining strong asset quality
While maintaining strong asset quality Pillar 2: Resilience Gross NPLs (KES Bn) Loan Loss Provisions (KES Bn) Cost of Risk 2.1% 2.3% 25.0 1.4% 13.7 23.6 11.6 10.8 FY 2020 FY 2021 FY 2022 21.4 Coverage Ratio 54% 55% FY 2020 FY 2021 FY 2022 Gross NPA 12% 10% 10% 46% Net NPA 3.9% 2.7% 2.7% FY 2020 FY 2
Slide 13: Supported by a solid funding base
Supported by a solid funding base Pillar 2: Resilience Total Deposits (KES Bn) Customer Deposit Mix 5% 13% 312 297 263 FY 2020 FY 2021 FY 2022 62% 58% Deposits by business segments Personal Banking 10% Corporate & Institutional 2021:12% Banking 34% 2021:32% 42% 38% Premium Banking 40% Business Banki
Slide 14: Maintaining adequate liquidity and capital buffers across subsidiaries
Maintaining adequate liquidity and capital buffers across our subsidiaries.. Pillar 2: Resilience Liquidity Ratio Capital Adequacy Ratios 51.6% 21.8% 20.9% 20.2% 41.9% 7.3% 17.8% 5.9% 39.4% 5.7% 15.2% 31.6% 0.7% 5.3% 32.6% 21.9% 19.4% 26.0% 12.6% 7.0% 14.5% 14.5% 14.5% 15.0% 12.5% 20.0% 20.0% 20.0%
Slide 15: Consistent performance supported by our transformation journey
Pillar 3: Our consistent performance has been supported by our transformation journey Optimisation Under iMara 2.0 strategy the Group’s focus has been on investing in digital platforms to diversify revenue streams and scaling business opportunities Total Operating Costs (KES Bn) Cost to Income Ratio
Slide 16: Investments in our platforms and successes contributing to growth
Our consistent performance has been supported by our transformation journey Investments in our platforms Successes of our investments in contributing to our growth Profit Before Tax (KES) Digitally Active Customers ‘On-The-Go’ OTG - Redesigned mobile app and 2019 2022 web platform 48% 70% New card D
Slide 17: Group Financial Highlights
We Are On Your Side Group Financial Highlights Classification: Public
Slide 18: 2022: Our Business showing strong growth momentum (income statement)
2022: Our Business showing strong growth momentum December 2020 December 2021 December 2022 Year on Year Growth Statement of Comprehensive Income KES Mn KES Mn KES Mn Net Interest Income 15,600 20,877 22,945 10% Non-Funded Income 8,638 8,736 12,724 46% Total Operating Income 24,238 29,612 35,669 20%
Slide 19: 2022: Statement of Financial Position
2022: Our Business showing strong growth momentum December 2020 December 2021 December 2022 Statement of Financial Position KES Mn KES Mn KES Mn Y-Y % Cash & Bank Balances 19,403 27,547 22,818 (17%) Investments & Placements 101,711 125,535 113,112 (10%) Loans & Advances (net) 187,391 210,620 238,590
Slide 20: 2022: Group Ratios
2022: Group Ratios Dec 2020 Dec 2021 Dec 2022 Liquidity 51% 52% 46% Cost/Income Ratio 42% 46% 45% Net NPA 3.9% 2.7% 2.7% Gross NPA 12% 10% 10% Return on Equity 13% 12% 15% Return on Assets 2.5% 2.2% 2.7% Capital Adequacy Ratio 22% 21% 21% Loan to Deposit Ratio 71% 71% 76% Cost of Risk 1.4% 2.1% 2.3%
Slide 21: Subsidiary Performance Highlights
We Are On Your Side Subsidiary Performance Highlights Classification: Public
Slide 22: Kenya: Profit and Loss
KENYA Contributed 82% to Group PBT Profit and Loss (KES bn) Operating income Expenses Loan Loss Provision PBT 18% 26.0 33% 4.1 16% 12.3 22% 93% 4% 22.0 10.2 10.6 18.0 3.1 1.6 2020 2021 2022 2020 2021 2022 2020 2021 2022 ✓ Strong PBT growth of 16% in 2022 Key Ratios Dec-20 Dec-21 Dec-22 ✓ Operating i
Slide 23: Kenya: Balance Sheet
KENYA Contributed 72% to Group Assets Balance Sheet (KES bn) Total Assets Expenses Net Loans and Advances Deposits 316 14% 184 5% 3% 308 3% 8% 234 8% 162 150 228 284 218 2020 2021 2022 2020 2021 2022 2020 2021 2022 ✓ Net Loans and advances had strong growth momentum on the back of Key Ratios Dec-20
Slide 24: Tanzania: Profit and Loss
TANZANIA Contributed 6% to Group Banking Subsidiaries’ Operating Income Profit and Loss (KES bn) Operating income Expenses Loan Loss Provision PBT 14% 2.2 1.3 25% 14% 1.9 0.4 0.5 1.7 531% -19% 0.3 0.2 -238% -0.7 2020 2021 2022 2020 2021 2022 2020 2021 2022 ✓ Operating income continued to grow consis
Slide 25: Tanzania: Balance Sheet
Tanzania Contributed 7% to Group Assets Balance Sheet (KES bn) Total Assets Expenses Net Loans and Advances Deposits 10% 32 11% 14% 29 19 24 19% 15% 17 24% 21 24 15 17 2020 2021 2022 2020 2021 2022 2020 2021 2022 Key Ratios Dec-20 Dec-21 Dec-22 ✓ The loan portfolio continued to show strong growth on
Slide 26: Rwanda: Profit and Loss
Rwanda Contributed 10% to Group PBT Profit and Loss (KES bn) Operating income Expenses Loan Loss Provision PBT 7% 36% 25% 5.0 0.6 120% 41% 1.5 3.4 3.7 - 72% 1.2 0.4 0.9 0.2 2020 2021 2022 2020 2021 2022 2020 2021 2022 ✓ Strong growth in operating income and PBT driven by improving net Key Ratios Dec
Slide 27: Rwanda: Balance Sheet
Rwanda Contributed 13% to Group Assets Balance Sheet (KES bn) Total Assets Expenses Net Loans and Advances Deposits 56 27 3% 11% 51 10% 7%6% 9% 16% 33 34 20% 46 27 24 23 2020 2021 2022 2020 2021 2022 2020 2021 2022 ✓ Growth in loans driven by growth in business banking segment and Key Ratios Dec-20
Slide 28: Uganda: Profit and Loss
Uganda Contributed 5% to Group PBT Profit and Loss (KES bn) Operating income Expenses Loan Loss Provision PBT 1.4 -139% 156% 0.7 22% 1.9 1.6 -0.5 -1.2 2021 2022 2021 2022 2021 2022 * 2021 operating income exc. one off sale ✓ Operating income supported by growth in the balance sheet and Key Ratios De
Slide 29: Uganda: Balance Sheet
Uganda Contributed 6% to Group Assets Balance Sheet (KES bn) Total Assets Expenses Net Loans and Advances Deposits 16% 26 26% 13% 7.9 6.3 21 23 18 2021 2022 2021 2022 2021 2022 ✓ Loans and deposits growth supported by improving economic climate in Key Ratios Dec-21 Dec-22 Uganda and focused integrat
Slide 30: Mauritius: Profit and Loss
Mauritius Contributed 4% to Group PBT* *I&M Group’s share of 50% PAT = KES 0.66bn Profit and Loss (KES bn) Operating income Expenses Loan Loss Provision PBT 8% 4.0 3.0 1.4 4% 1.4 -106% 4% 195% 3.7 -53% 3.6 -0.2 -0.1 -1.5 2020 2021 2022 2020 2021 2022 2020 2021 2022 ✓ Operating income growth supporte
Slide 31: Mauritius: Balance Sheet
Mauritius Balance sheet growth following 2-year period of de-risking Balance Sheet (KES bn) Total Assets Expenses Net Loans and Advances Deposits -25% 12% -13% 26% 57 -27% 10% 157 51 132 131 45 107 117 97 2020 2021 2022 2020 2021 2022 2020 2021 2022 ✓ Private Banking business grew led by its strong
Slide 32: 2022: Our Business showing strong growth momentum
2022: Our Business showing strong growth momentum Profit Before Tax (KES) Total Income (KES) Cost/Income Ratio 14,992m 35,668m 45% +21% +20% 2021: 46% Net Loans & Advances (KES) Customer Deposits (KES) Return on Equity 239bn 312bn 15% +13% +5% Absolute 3% Classification: Public
Slide 33: Building an environment where the best people want to work
Building an environment where the best people want to work Culture 2022 marked the roll out of our cultural transformation program PAMOJA “Together we Shine”, Transformation in which over 2,000 staff completed the Culture Change Cascade workshop Talent Focus on development of top talent via the laun
Slide 34: Creating an enabling environment for a better tomorrow
Focusing on creating an enabling environment for a better tomorrow Environmental Conservation Education and skills development The I&M Foundation in collaboration with 4 ▪ The I&M Foundation offered scholarships to community partners in two Counties - Kilifi and 133 students for Secondary and Tertia
Slide 35: Financial Metrics
Financial Metrics Earnings Per Share (KES) Book Value Per Share (KES) 38% 10% 1% 6.8 46.3 9% 4.9 4.9 42.1 38.8 2020 2021 2022 2020 2021 2022 Current P/E – 2.5x Current P/B – 0.4x Dividend Per Share (KES) Dividend Yield 13.2% 50% 2.25 33% 1.50 7.2% 1.13 5.0% 2020 2021 2022 2020 2021 2022 Share price
Slide 36: Group Outlook: Aspiring towards our 2023 targets
GROUP OUTLOOK: Aspiring towards our 2023 targets Profit Before Tax KES Focus on providing our Corporate Customers with Continue leveraging on value add services, maintain our advantage in Trade Finance, leverage in Agriculture and +20Bn corporate strength Oil&Gas opportunities + Return on Equity +21
Slide 37: Q&A
We Are On Your Side Q&A Classification: Public
Slide 38: 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 Classification: Public
Slide 39: 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