Wed. Jan 19th, 2022

The Regional Financial Services Group, I&M Group PLC, has announced a 33% increase in after-tax profits for its 2021 half-year financial results, from UGX 102.5 billion to UGX 134.6 billion.

In a statement, the Group says its total assets grew 12% to close at UGX $ 12.2 trillion more than UGX $ 10.9 trillion in June 2020, bolstered by the expansion in Uganda and the increase in public and private sector lending.

The group adds that the acquisition of Orient Bank Ltd (OBL) in Uganda has expanded the group’s balance sheet by UGX 753 billion at the date of submission of the report.

Net interest income also grew by 28%, to UGX 285.2 billion, compared to UGX 221.1 billion in June 2020, attributed to the increase in interest income on public securities.

The group’s total unfunded revenue decreased by 6% to 124.9 billion UGX, from 134.6 billion UGX.

Net delinquent loans fell by 8% compared to June 2020, to close at UGX 240.3 billion attributed to enhanced corrective actions to improve the quality of the loan book.

Customer deposits grew by 10%, from 8.09 trillion UGX in June 2020 to 8.887 trillion UGX in June 2021.

I & M Holdings’ half-year profit jumped 17% to Ksh4.5Bn

Commenting on the group’s financial data, Daniel Ndonye, ​​chairman of I&M Group PLC, said the Group’s focus on increasing lending to both the private and public sectors was key to determining the bank’s growth at a time in which economies around the world were hard hit by the Covid Pandemic effect19.

This is due to the strong capital and liquidity base at the level of groups and countries, all well above regulatory minimums.

At the group level, capital adequacy ratios closed at 21% at the same level as the previous year, while the liquidity ratio was 48% well above the legal minimum of 20%.

During the period under review, the Group completed the acquisition of a 90% stake in Uganda’s OBL, which the bank says is part of the Group’s broader regional expansion strategy to meet the needs of all customers locally and regionally, while promoting trade flows. within the region.

“We will continue to focus on our customers in all banking segments through a range of products and innovations tailored to enhance the customer banking experience across all of our subsidiaries,” he added.

During the period under review, the Group also deployed, through its wholly owned subsidiary, I&M Capital Limited, a series of wealth management solutions, which is expected to drive revenue diversification through the provision of investment solutions. personalized investment, asset management, retirement income and financial planning for people with high network.
The Group says that its Total Assets recorded a growth of 12% / COURTESY

In addition, the Rwandan and Tanzanian subsidiaries launched Whatsapp banking as part of the Group’s digital transformation journey to provide customers with the freedom of modern banking.

“We will also continue to invest and offer cutting-edge technology solutions to our customers and expand opportunities to attract more investors,” Ndonye added.

The group’s chief executive, Sarit Raja Shah, highlighted the significant investment made during the first half of 2021, saying that along with the innovation of market-based solutions, the group has also made significant investments in new systems throughout the world. Group in order to increase operational efficiency. and improve their customers ’banking experience.

I&M quarter-quarter profits jump 20.4% on higher revenue

In addition, the Group advanced its strategic effort to create long-term value for stakeholders, by continuing to invest in environmental, social and governance initiatives as a means to build resilience and mitigate operational risks. , cybernetics and emerging credit.

During the period under review, the Bank invested in a new risk management infrastructure to control money laundering, operational risk and fraud management, as a key step in protecting its customers from the threat of financial crimes in the systems. of the bank.

Through the I&M Foundation, the Group collaborated with related organizations to promote its shared growth agenda in key thematic areas, namely: Education and skills development, Environmental conservation, Economic empowerment and Facilitating donation.

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