I&m Group Plc · NSEKE:IMH
I&m — FY2021 Earnings Presentation
42 slides from I&m's earnings presentation, 2022
Slide 1: We Are On Your Side: FY 2021 Results Investor Presentation
FY 2021 RESULTS INVESTOR PRESENTATION Our Core Values Our Brand Promise We Are INTEGRITY TRUST RESPECT INNOVATION COURAGE On Your Side
Slide 2: Group footprint across Kenya, Tanzania, Rwanda, Mauritius and Uganda
KENYA TANZANIA RWANDA MAURITIUS UGANDA I&M Bank LIMITED I&M Bank (T) Limited I&M Bank (Rwanda) PLC ✓ 210,000+ customers Bank One Limited I&M Bank (Uganda) Ltd* ✓ 17,000+ customers ✓ 65,000+ customers ✓ 39 Branches ✓ 35,000+ customers ✓ 75,000+ Customers ✓ 8 Branches ✓ 18 Branches ✓ 54 ATMs ✓ 8 Branc
Slide 3: I&M Group Plc Entities
I&M Group Plc Entities I&M Bank Group - Kenya I&M Group Plc (Company) I&M Bank Kenya Ltd (Bank) +I&M Bank Group - Kenya + I&M Bank Tanzania Ltd +I&M Rwanda Ltd + I&M Bancaassurance +I&M Uganda Ltd Intermediary Ltd +Bank One Ltd + Youjays Insurance Brokers Ltd +I&M Realty +I&M Burbidge Capital Ltd +I
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Slide 5: Tail Winds Head Winds
Tail Winds Head Winds East Africa economies saw a rebound in activity A resilient US dollar combined with softer with easing of lockdown down measures. global commodity prices (except for oil) and lack of global travel to SSA impacted SSA Economic Currency national currencies negatively Rebound Depr
Slide 6: FY2021 key performance highlights
Return on Equity 12% (2020 – 10%) Earnings per Share Kshs 4.92 (2020 – Kshs 4.88) Shareholder Value Dividend Per Share Kshs. 1.50 (2020 – Kshs 1.13) Total Assets Kshs 415Bn - 16% Net Loans and Advances Kshs 211Bn - 12% Financials Profit Before Tax Kshs 12Bn - 13% Net Promoter Score 74% (2020 – 34%)
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Slide 8: Aspiration, Strategic Pillars and Enablers
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 Strategic Partnerships Data Analytics Enablers Design and d
Slide 9: Aspiration Targets and Key Focus Areas
Aspiration Targets Key Focus Areas Customer Base Growth Ecosystem Banking +21% Segment Expansion Return On Equity MSME and Retail Business Omni Channel Implementation (‘On the Go’) +20Bn Leading to full digital distribution capability Profit Before Tax Eastern Africa’s Innovation Leading Financial D
Slide 10: PBT, Total Assets and Shareholders Funds by country
PBT Total Assets Shareholders Funds 4% -4% 3% 13% 12% 5% 5% 4% 6% 6% Kshs. Kshs. Kshs. 12Bn 415Bn 69Bn 11% 9% 66% 68% 85% Bank One Uganda Tanzania Rwanda Kenya Bank One Uganda Tanzania Rwanda Kenya Bank One Uganda Tanzania Rwanda Kenya Balance: Non-banking subsidiaries & elimination
Slide 11: New business offerings
New business offerings New Product Offering • Offshore Products: Collaboration between I&M Capital and Bank One to provide access to offshore products for Kshs +700 Mn Wealth potential customers. Assets under Management by Management • Money Market Funds I&M Capital • Bond Leverage Product Revenue F
Slide 12: NPS Score and digital channels
New business offerings NPS Score ~79% Digital unsecured 71% of I&M Group’s transactions were loans executed digitally in 2021, with a transaction value of ~Kshs 543Bn Digital Onboarding ✓ The Groups recognizes the need to reward its Channel Distribution Solution customers. In Kenya, the loyalty poin
Slide 13: New Digital Initiatives
New Digital Initiatives Digital unsecured Mobile Lending WhatsApp Banking loans Launched in Sept 2021 Over 1K Launched in Oct 2021 128K Registered Users 115 Active Customers Number of loans Kshs. 158Mn Universal Payment Kshs. 113n Disbursed Solution (POP) Disbursed Over 54K Number of Transactions Ov
Slide 14: Loans, operating income, assets and deposits trends
Loans (Kshs Bn) Total Operating Income (Kshs Bn) Total Assets (Kshs Bn) +12% +7% 211 +16% 187 +14% 175 +22% +2% 415 30 358 24 24 315 Dec-19 Dec-20 Dec-21 Deposits (Kshs Bn) +13% +14% 297 263 230 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21
Slide 15: Group liquidity and capital ratios
Improved Focused drive to Defined roadmap for Enhanced risk management framework and Liquidity lower cost of funds ESG initiatives investment in cyber security tools 52% +30% Group liquidity ratio growth in CASA driving down cost of funds Liquidity Ratio Core Capital Ratio Total Capital Ratio 57% 18
Slide 16: I&M Foundation initiatives
Economic Empowerment Enabling Giving The Group remains committed to mitigating direct social and Education and environmental impacts and managing indirect impacts, while Environment Skills continuously working to integrate environmental, social and broader Conservation Development governance factors
Slide 17: Technology investment and cost-to-income trend
Improved process efficiencies CIR Trend Standardization of operations, systems and processes across its Kshs 2.0Bn subsidiaries in the region invested in technology in 2021 46% (Capex & Opex) 42% 40% Increased investment Increased CIR is related to in infrastructure investment in technology, the res
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Slide 19: Macroeconomic review and digital initiatives
+75% Macroeconomic review ❖ 9% GDP Growth in Q4 2021 (-2% Q4 2020); ❖ Accelerated roll out of vaccinations and lifting of the pandemic control measures; of the Bank’s transactions were executed digitally in ❖ Supportive monetary policy: Private sector credit growth of 9% in the year 2021. New Digita
Slide 20: Kenya bank income statement and financial position
Dec-21 Dec-20 Dec 21 vs Dec 20 Statement of Comprehensive Income Kshs Mn Kshs Mn Y-Y % ▲ Total Operating Income 21,876 18,396 19% Operating Expenses 8,190 6,505 26% Profit before Loan Loss Provisions 13,686 11,891 15% Loan Loss Provisions 3,098 1,602 93% Profit before Tax 10,587 10,289 3% Dec-21 Dec
Slide 21: Gross NPLs, loan loss provisions and coverage ratio
Gross NPLs (Kshs Bn) Loans Loss Provisions (Kshs Bn) Coverage Ratio 75% 69% +13% 60% +7% -8% +25% 20 11 19 19 10 8 Dec-19 Dec-20 Dec-21 Cost of Risk 1.9% Dec-19 Dec-20 Dec-21 1.1% Gross NPA 12% 12% 10% Dec-19 Dec-20 Dec-21 0.4% Net NPA 4.8% 3.9% 2.7% Dec-19 Dec-20 Dec-21 21
Slide 22: Subsidiary results
PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) +28% +15% +25% -1% +26% -1% 0.5 17 21.4 0.4 15 15 17.2 0.4 13.6 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Total Operating Income (Kshs Bn) Assets (Kshs Bn) Equity (Kshs Bn) +16% +19% +22% +2% 2.0 +7% +12% 29 4.8 1.7 1.7 24 3.9 22
Slide 23: Subsidiary results
PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) -173% -19% -1% +195 -27% 2.0 64 -13% 133 132.2 1.4 51 45 97.1 -1.5 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Total Operating Income (Kshs Bn) Assets (Kshs Bn) Equity (Kshs Bn) +10% +2% -4% +1% -8% -25% 4.0 4.0 154 157 9.8 9.4 9.5
Slide 24: Subsidiary results
PBT (Kshs Bn) Loans (Kshs Bn) Deposits (Kshs Bn) +41% +7% +22% +6% -14% 1.2 23 24 +32% 29.1 1.0 19 27.4 0.9 20.7 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Dec-19 Dec-20 Dec-21 Total Operating Income (Kshs Bn) Assets (Kshs Bn) Equity (Kshs Bn) +8% +11% +13% +11% +34% +30% 3.7 51 6.8 3.4 46 6.0 3.1 34
Slide 25: Uganda subsidiary results
❖ Group results include 8 months period post acquisition ❖ Integration efforts focused on loan book review and alignment with the Group systems and processes; Total Assets Shareholder Funds Loss before tax Kshs. 23 Bn Kshs. 3.3 Bn Kshs. 0.59Bn Loans Deposits Kshs. 6.3 Bn Kshs. 18 Bn
Slide 26: Key Ratios by subsidiary
Tanzania Rwanda Mauritius Uganda Key Ratios 2021 2020 2021 2020 2021 2020 2021 Gross NPA 9.7% 17.3% 4.5% 3.6% 3.2% 8.7% 1.8% Net NPA 5.7% 9.9% 1.1% 0.0% 0.6% 2.1% 1.1% Loan to Deposit 81.4% 88.0% 83.5% 82.6% 57.2% 46.9% 34.4% Cost to Income Ratio 62.6% 62.8% 64.3% 59.2% 67.1% 73.6% 95.4% ROE 7.8% 7.
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Slide 28: Group Statement of Comprehensive Income
Dec 21 vs Statement of Comprehensive Dec-21 Dec-20 Comments Dec 20 Income Kshs Mn Kshs Mn Y-Y % Attributed by growth in loan book, increased income Net Interest Income 20,877 15,600 34% from investment in government securities and reduction of interest expenses Marginal increase due to reduction in
Slide 29: Group Statement of Financial Position
Dec 21 vs Statement of Dec-21 Dec-20 Comments Dec 20 Comprehensive Income Kshs Mn Kshs Mn Y-Y % Cash & Bank Balances 25,746 19,403 42% Cash balances reflective of strong liquidity Investments & Placements 125,446 101,588 24% Loans growth due to increase lending and Kshs. 6 Loans & Advances (net) 210
Slide 30: Segmental and sectorial distribution of loans and advances
Segmental Distribution of loans and Advances (Kshs Bn) Loans Sectorial Distribution Personal Banking Premium 5% Others Banking 16% 5% Manufacturing 25% Business services 8% Business Transport and Banking communication Wholesale and 20% 7% retail trade 19% Corporate Real estate Banking 15% 70% Buildi
Slide 31: Gross NPLs, loan loss provisions and coverage ratio
Gross NPLs (Kshs Bn) Loans Loss Provisions (Kshs Bn) Coverage Ratio +11% -9% 71% 24 +11% 67% 23 23 59% +28% 12 11 8 Dec-19 Dec-20 Dec-21 Cost of Risk 2.0% Dec-19 Dec-20 Dec-21 1.3% Gross NPA 12% 13% 10% Dec-19 Dec-20 Dec-21 0.4% Net NPA 5.0% 4.2% 2.9% Dec-19 Dec-20 Dec-21 31
Slide 32: Key Ratios
Key Ratios 2021 2020 Capital & Liquidity Liquidity 52% 51% Total Capital to total risk weighted asset ratio 21% 22% Loan to Deposit Ratio 71% 71% Efficiency Cost/Income Ratio 46% 42% Asset Quality Net NPA 2.9% 4.2% Gross NPA 10% 13% Cost of Risk 2.0% 1.3% Returns Return on Equity 12% 10% Return on A
Slide 33: 2022 Outlook
9’s Outlook
Slide 34: Outlook: Tail Winds and Head Winds
Tail Winds Tail Winds Head Winds Entrench the financial services in the customer’s operations Geo Political while making it as convenient as possible for them to do Economic business. Rebound in EA Issues impacting EA Target NPS score +75% Region . Focus on growing regional business and aligning all
Slide 35: Awards and recognition
I&M Rwanda “Product Innovation of the Bank One - Best Trade Year” by SME Finance Forum Finance Best Bank (2021) in Rwanda” by CFI.co Bank One - Best Mass Bank One – Private Bank Affluent Banking Offering In Mauritius
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Slide 37: Profit Before Tax, deposits, loans and ROE growth
Profit Before Tax Customer Deposits Net Loans & Advances Return on Kshs Kshs Kshs Equity +13% +13% +12% +2% (Absolute)
Slide 38: Appendix
Appendix
Slide 39: Our Company & Group Results
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 40: I&M Bank Group Kenya 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%
Slide 41: 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 42: 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