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I&M Bank Uganda has released its 2023 annual performance results showing accelerated growth and profitability since the I&M Group Plc acquired the former Orient Bank in 2021.
I&M Group Plc acquired Orient Bank Ltd on 30th April 2021 and fully rebranded it into I&M Bank (Uganda) Limited in November 2021. Since the acquisition, I&M Group Plc one of Eastern Africa’s leading banking and insurance groups, has invested over UGX108 billion in recapitalising the bank. The Group has llso invested USD9 million (UGX34 billion) into the digitisation of its systems and platforms headlined by an upgrade to a Finacle Core Banking Solution System.
According to results released today, the bank reported a 10.1% growth (8.9% in 2022) in deposits, from UGX624.6 billion to UGX687.8 billion, an increase of UGX63.2 billion. With enhanced deposits growth, customer lending, grew by 28.6% (19% in 2022) from UGX234.1 billion to UGX301 billion, an increase of UGX66.9 billion. This enabled income to grow by UGX10.6 billion or 12.5% (10.1% in 2022) from UGX84.8 billion to UGX95.4 billion.
Increased lending and income led to a 105.4% growth in net profit from UGX5.6 billion in 2022 to UGX11.5 billion in 2023, an increase of UGX5.9 billion.
This is the second straight year of profitability since I&M Group Plc acquired Orient Bank. Before that, the bank had been making losses for three straight years.
Growing profitability saw accumulated losses drop by 50% from UGX23 billion to UGX11.5 billion.
All-round growth has also seen the bank’s balance sheet improve, with total assets growing by UGX158 billion or 20.1% ( 10.7% in 2022) from UGX786.5 billion to UGX944.5 billion.
Better performance coupled with increased group investment has also helped the bank to buttress itself⏤ issued capital grew by 40% from UGX150 billion to UGX210 billion, well above the regulatory UGX150 billion limited.
Core Capital also grew by 95.4% from UGX69 billion to UGX134.8 billion.
Digital and innovation-led future growth
I&M Bank is now looking to build on this performance as well as its recent investments in digital transformation to grow even further.
At a recent press conference to announce upgrade to the more robust Finacle Core Banking Solution System, Robin Bairstow, the bank’s Chief Executive, said that the upgrade give the bank “a significant opportunity to drive customer acquisition through offering relevant products and services”.
“Finacle is a robust platform designed to significantly enhance our service delivery, ensuring greater efficiency and an improved customer experience. This will enable us to deliver innovation-led growth while leveraging technology to achieve operational excellence,” Mr. Bairstow said, adding: “The Finacle Core Banking Solution System has a primary focus on usability and will improve our customers’ banking experience. The new system is web-based, supports multiple currencies and enables hosting of all digital channels under one banking platform thus providing an omni-channel experience.”
Mr Bairstow added that the new system will enable I&M Bank Uganda to offer end-to-end financial services and solutions, including but not limited to; digital account opening, deposits, loan payments, and trade finance, among others.
The I&M Bank Group Plc which has been operating in the region since 1974 is celebrating 50 years this year. It is one of the leading banking and insurance group in Eastern Africa with a presence in Kenya, Mauritius, Rwanda, Tanzania and Uganda.