I&m Group Plc · NSEKE:IMH
I&m — FY2023 Earnings Presentation
42 slides from I&m's earnings presentation, March 2024
Slide 1: FY2023 Financial Results
FY2023 FINANCIAL RESULTS
Slide 2: Our Regional Footprint
Our Regional Footprint UGANDA KENYA RWANDA 5 Countries Over 560k Customers TANZANIA 93 Branches 132 ATMs Over 2.8k Staff Over 4.6k Shareholders MAURITIUS Classification: Public
Slide 3: Macro-Economic Highlights
MACRO-ECONOMIC HIGHLIGHTS
Slide 4: The macro-economic environment we have been operating in
The macro-economic environment we have been operating in... Country Trend Headwinds Tailwinds Impact on our Business ■ Higher interest rates/inflation ■ Economy remained resilient ■ Impact on credit growth ■ Volatile currency ■ Higher cost of risk and NPLs ■ Lower disposable incomes ■ Slowing our gr
Slide 5: Taking Stock of Our Strategy iMara 2.0
TAKING STOCK OF OUR STRATEGY iMara 2.0
Slide 6: A recap of our iMara 2.0 Strategy (2021 – 2023)
A recap of our iMara 2.0 Strategy (2021 – 2023) Aspiration Eastern Africa’s Leading Financial Partner for Growth Strategic Pillars & 1. Driving Business Growth 2. Building a Resilient Organisation 3. Optimising the operating model initiatives Enablers Customer Experience Cultural Transformation Stra
Slide 7: Our successes from iMara 2.0 (2021 – 2023)
Our successes from iMara 2.0 (2021 – 2023) Customers Business Customer Numbers Revenue from New Business 2020 2023 2020 2023 <250,000 >560,000 <10% 22% Net Promoter Score Subsidiary PBT Contribution 2020 2023 2020 2023 34% 71% 5% 24% Digitally Active Customers Cyber Security Maturity Score 2020 2023
Slide 8: How we have achieved our success
How we have achieved our success Our customer centric approach to the business has been the key anchor to driving success Key focus areas: Optimising the 1. Geographic Expansion Operating Model 2. Segment Expansion Building 3. Growing a full digital distribution capability Resilience (innovation, au
Slide 9: 1. Geographical diversification
1. Geographical diversification 2021 marked the year when the Group solidified its presence in East Africa through the acquisition of Orient Bank Uganda (rebranded as I&M Bank Uganda). PBT Contribution by Regional Subsidiaries 5% 15% 14% 24% We continue to see our diversification strategy yielding f
Slide 10: 2.1 Segment Expansion
2.1 Segment Expansion Our strategy has enabled us to create relevant propositions with a focus on growing our customer numbers and improving the deposit mix Customer Numbers Deposit Mix 560,116 31% 3Y CAGR 58% 53% 64% 61% 248,000 42% 47% 36% 39% Dec-20 Dec-23 Dec-20 Dec-21 Dec-22 Dec-23 CASA TERM Cl
Slide 11: 2.2 Segment Expansion – Corporate & Institutional Banking
2.2 Segment Expansion – Corporate & Institutional Banking Defending our Corporate Strength Loans & Advances Deposits (KES Bn) (KES Bn) 33% 44% 13% ❑Corporate and Institutional 5% 154 Business (CIB) grew by 3 Year 219 164 100 106 CAGR of 34%; 145 ❑CIB segment has grown following our entry into new se
Slide 12: 2.3 Segment Expansion – Personal & Business Banking
2.3 Segment Expansion – Personal & Business Banking Building our Personal and Business Banking Space Loans & Advances Deposits (KES Bn) (KES Bn) 28% ❑Focused approach to growing the 24% Personal and Business Banking 14% 5% (PBB) business through attractive 92 263 value propositions tailored 74 196 2
Slide 13: 3. Growing full digital distribution capability
3. Growing full digital distribution capability ~ 81% of I&M Group’s transactions were executed digitally in 2023, with a transaction value of ~ KES 1.2 trillion Channel Distribution Digital Transaction Trend NPS Score Mn KES 71% Trn 35 1.4 62% 19% 30 1.2 33% 25 1 20 0.8 34% 15 0.6 81% 67% 10 0.4 5
Slide 14: 4. Investments in People
4. Investments in People Empowering our people through upskilling, learning and development and ensuring diversity and inclusion Talent to Support Growth 2020 2023 2,172 30% 2,814 Talent Engagement 2020 2023 300bps 75% 78% Overall Gender Diversity Ratio F:M 2020 2023 50:50 48:52 Senior Management Ge
Slide 15: 5. Building Brand Relevance
5. Building Brand Relevance o I&M Bank celebrates 50 years this year in May. A bank with strong Kenyan roots, built on diversity and inclusion with presence in the Eastern Africa region. o An authentic regional bank that positively impacts our communities and businesses. o A Bank that develops stron
Slide 16: Strong and Stable Rating by Fitch Ratings
Strong and Stable Rating by Fitch Ratings I&M Group Plc National Long-Term ❑ I&M Group's and I&M Bank's National Rating Long-Term Ratings of 'A+(ken)' reflect their creditworthiness relative to that of A+ other Kenyan issuers. Stable Outlook Long-Term Issuer ❑ I&M Group's and I&M Bank's Long-Term De
Slide 17: Our efforts to remain relevant to our customers are being recognised
Our efforts and focus to remain relevant to our customers are being recognised Mauritius Uganda Rwanda Kenya Tanzania RWIBA Awards 2023 Think Business Awards CFI.co Insurance Innovation • Most Enlightened • 1st Runner-Up, Best Africa Bank 4.0 Awards • Best Custodian Bank - Awards 2022 Employer Bank
Slide 18: We remain committed to positively impacting our communities
We remain committed to positively impacting our communities We have positively impacted over 2.1 million lives over the last 3 years Supporting institutions providing sustainable solutions ■ 2022 - Partnered with the WEEE Centre to ensure safe disposal of e-waste within the I&M eco-system; In 2023,
Slide 19: Group Financial Highlights
GROUP FINANCIAL HIGHLIGHTS
Slide 20: Group Income Statement
Group Income Statement Total Operating Income (KES Bn) Profit before Provisions (KES Bn) Key Ratios FY 2023 FY 2022 FY 2021 42.7 22.3 35.7 19.6 Cost to income ratio 48% 45% 46% 29.6 20% 16.1 14% Cost of Risk 2.5% 2.3% 2.1% 20% 22% ROE 15% 15% 12% ROA 2.6% 2.7% 2.2% Dec-21 Dec-22 Dec-23 Dec-21 Dec-22
Slide 21: Group Balance Sheet
Group Balance Sheet Total Assets (KES Bn) Net Loans & Advances (KES Bn) Customer Deposits (KES Bn) 33% 30% 33% 579 417 311 437 415 312 239 297 211 Dec-21 Dec-22 Dec-23 Dec-21 Dec-22 Dec-23 Dec-21 Dec-22 Dec-23 ■ Net loans and advances up by 30% year on year driven by the growth Key Ratios FY 2023 FY
Slide 22: Strong liquidity and capital position across all subsidiaries
Strong liquidity and capital position across all subsidiaries Liquidity Ratio Capital Adequacy Ratio 29% 52% 50% 39% 35% 18% 18% 18% 29% 17% 14.5% 15.0% 14.5% 14.5% 20% 20% 20% 20% 20% 12.5% Kenya Rwanda Tanzania Uganda Mauritius Kenya Rwanda Tanzania Uganda Mauritius Regulatory Limit Liquidity Buff
Slide 23: iMara 2.0 Scorecard
iMara 2.0 Scorecard 2023 Targets 2023 Achievement Profit Before Tax KES Profit Before Tax KES Driving Business +20Bn 17Bn Growth + Return on Equity Return on Equity +21% +15% Building A Resilient Digitally Active Customers Digitally Active Customers Organisation 74% 78% + Net Promoter Score Net Prom
Slide 24: Subsidiary Performance Highlights
SUBSIDIARY PERFORMANCE HIGHLIGHTS
Slide 25: Recap: The macro-economic environment we have been operating in
Recap: The macro-economic environment we have been operating in.. Country Trend Headwinds Tailwinds Impact on our Business ■ Higher interest rates/inflation ■ Economy remained resilient ■ Impact on credit growth ■ Volatile currency ■ Higher cost of risk and NPLs ■ Lower disposable incomes ■ Slowing
Slide 26: Kenya: 76% contribution to Profit Before Tax
Kenya: 76% contribution to Profit Before Tax (70% to Total Assets) Total Operating Income (KES Bn) Profit Before Tax (KES Bn) 12.3 Key Ratios FY 2023 FY 2022 FY 2021 29.0 12.1 -1% 25.6 14% 16% 22.1 16% Cost to income ratio 40% 36% 39% 10.6 Cost of Risk 2.6% 2.3% 1.8% Loan to Deposit Ratio 76% 79% 71
Slide 27: Kenya
Kenya CASA ratio % Revenue from New Business 40% 24.4% 34% 12.4% 31% 5.6% Dec-21 Dec-22 Dec-23 Dec-21 Dec-22 Dec-23 Classification: Public
Slide 28: Kenya
Kenya Customer - Significant Growth Y-o-Y Digital Transactions - Strong Accelerated Growth Q-o-Q (‘000) 326,054 27% +35% 257,388 4,755 15% 224,029 +42% 3,531 +44% 2,481 1,725 Dec-21 Dec-22 Dec-23 Q1 2023 Q2 2023 Q3 2023 Q4 2023 8 new branches opened with a plan to open 12 more branches taking the to
Slide 29: Tanzania: 2% contribution to Profit before Tax and 8% to Total Assets
Tanzania: 2% contribution to Profit before Tax and 8% to Total Assets Total Operating Income (KES Bn) Profit Before Tax (KES Bn) 3.5 0.5 Key Ratios FY 2023 FY 2022 FY 2021 145% 0.3 2.2 Cost to income ratio 62% 73% 64% 2.0 56% 12% Cost of Risk 5.4% 6.5% 1.2% -240% Loan to Deposit Ratio 84% 80% 81% -0
Slide 30: Rwanda: 12% contribution to Profit Before Tax and 15% to Total Assets
Rwanda: 12% contribution to Profit Before Tax and 15% to Total Assets Profit Before Tax (KES Bn) Key Ratios FY 2023 FY 2022 FY 2021 Total Operating Income (KES Bn) 1.9 5.8 Cost to income ratio 62% 60% 62% 1.5 4.7 1.2 24% Cost of Risk 1.4% 1.4% 0.7% 3.7 23% 25% 29% Loan to Deposit Ratio 83% 79% 84% N
Slide 31: Uganda: 3% contribution to Profit Before Tax and 7% of Total Assets
Uganda: 3% contribution to Profit Before Tax and 7% of Total Assets Total Operating Income (KES Bn) Profit Before Tax (KES Bn) Key Ratios FY 2023 FY 2022 FY 2021 0.7 -38% 2.6 0.4 Cost to income ratio 80% 90% 100% 1.9 Cost of Risk 0.8% -7.0% 0.0% 37% 1.6* Loan to Deposit Ratio 48% 38% 34% 19% 216% Ne
Slide 32: Mauritius: 8% contribution to Profit before Tax
Mauritius: 8% contribution to Profit before Tax Total Operating Income (Kshs Bn) Profit Before Tax (Kshs Bn) Key Ratios FY 2023 FY 2022 FY 2021 80% 2.6 Cost to income ratio 62% 67% 66% 41% 5.7 4% 10% 1.4 1.4 Cost of Risk -0.7% -0.2% -0.4% 4.0 3.7 Key Ratios Loan to Deposit Ratio 43% 53% 46% Net NPA
Slide 33: Our New Horizon iMara 3.0
OUR NEW HORIZON iMara 3.0
Slide 34: Our Strategic Journey to Date
Our Strategic Journey to Date iMara: Build a stable foundation iMara 2.0:Invest in diversification iMara 3.0:Scaling new business (2016-2020) (2021-2023) (2024-2026) Priorities Priorities Priorities ❑ Re-platforming ❑ Value proposition enhancements ❑ Accelerating growth in priority ❑ Digital & syste
Slide 35: Building on our Strategic Achievements via iMara 3.0 (2024-2026)
Building on our Strategic Achievements via iMara 3.0 - (2024-2026) Long term Ambition Eastern Africa’s Leading Financial Partner for Growth Best Bank for >85% 3 Year Impact +10 Mn lives Digitally Active Customer Experience Objectives impacted Customers (NPS>70%) 1 2 3 Our Develop Leadership in Build
Slide 36: Our Sustainability Action Plan
Our Sustainability Action Plan Long term Ambition Positively Impact 50 Million lives by 2030 3 Year +10 Mn lives USD 50mn of funding Business catalyzed across Impact impacted Sustainability Objectives various initiatives 1 2 3 Our Enabling last mile financial Build Sustainable Enhance the quality of
Slide 37: iMara 3.0 - Our North Star
iMara 3.0 - Our North Star Digitally Active Customers Develop Leadership in our +85% core Segments (Corporate & Commercial) + Net Promoter Score Impact +70% >10 Million Lives Build Relevance in Emerging Customer Segments Grow to (Retail & SMEs) + >1 Million Customers Best Bank for Employee Become a
Slide 38: Summary
SUMMARY
Slide 39: Group Summary Highlights
Group Summary Highlights Profit Before Tax (KES) Total Income (KES) Cost of Risk 16.7bn 42.7bn 2.5% +11% +20% Net Loans & Advances (KES) Customer Deposits (KES) Return on Equity 311bn 417bn 15% +30% +33% Absolute 0.1% 14%
Slide 40: Financial Metrics
Financial Metrics Earning Per Share KES Book Value Per Share (KES) 7.6 53.3 6.8 46.3 42.1 4.9 2021 2022 2023 2021 2022 2023 Dividend Per Share (KES) Dividend Yield 13.2% 13.0% 2.55 2.25 1.5 7.2% 2021 2022 2023 2021 2022 2023 Classification: Public
Slide 41: 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 42: Thank You
Thank You Merci Webale Murakoze Asante I&M GROUP PLC 1 PARK AVENUE 1ST PARKLANDS P.O. BOX 30238 – 00100 TEL: +254 (0)20 3221000 Investor-Relations@imgroup-plc.com