Senior I&M Bank officials pause for a picture during a recently held BDO Burbridge Capital Market Symposium held at the Nakawa Business Park in Kampala
Kampala, Uganda I HABARI DAILY I I&M Bank, one of the leading commercial banks in Uganda, has announced that it has successfully met the Bank of Uganda’s (BoU) minimum capitalization requirement by capitalizing the bank to a tune of sh150 billion. This achievement comes one year after the bank acquired Orient Bank, signaling its commitment to expanding its presence in the Ugandan market.
During a recent press conference, Sam Ntulume, the Executive Director of I&M Bank, highlighted the bank’s strong performance over the past year. “If you look at our performance from June 2021 to June 2022, we have witnessed significant growth in our assets, with an increase of over sh70 billion year on year. Our deposits have also shown substantial growth,” Ntulume stated.
Ntulume further expressed his gratitude to the bank’s shareholders for injecting the necessary capital to support their expansion plans in Uganda, particularly in terms of branch network and visibility. Additionally, he mentioned an improvement in the bank’s profit before tax, with a year-on-year increase of sh5 billion. This growth has been observed both locally as a bank and as a group.
Speaking about the merger with Orient Bank, Ntulume emphasized the importance of retaining clients and expanding the branch network. He mentioned that I&M Bank successfully onboarded new customers who were previously banking with the bank’s branches in Rwanda, Tanzania, and Kenya but had business interests in Uganda.
“We have also increased our funding to the agriculture sector, recognizing that 80% of Ugandans derive their income from this sector. Additionally, we are providing support to clients in the oil and gas sector, agriculture and agribusiness, manufacturing trade, in line with the government’s efforts to industrialize the country,” Ntulume explained.
In line with their commitment to facilitating import and export trade and promoting value addition to locally manufactured products, I&M Bank recently launched a new Export Finance Scheme in collaboration with the Uganda Bankers Association. The scheme, which amounts to sh1 trillion, aims to support clients engaged in value addition in the export business. The bank is currently working on the allocation modalities for these funds.
Furthermore, Ntulume mentioned the bank’s membership in the Uganda Chamber of Mines, highlighting their interest in funding projects that contribute to the development of the mining sector.
Regarding the increase in the minimum capital requirements set by the central bank, Ntulume confirmed that the Bank of Uganda reached out to them. The minimum capital requirement has risen from sh25 billion to sh250 billion. However, thanks to continued shareholder support, I&M Bank has managed to increase its share capital base to sh150 billion, with the bank’s capital base reaching sh80 billion.
I&M Bank currently operates 12 branches across Uganda, the latest one being located at Kingdom Kampala. In addition to their financial activities, the bank also recently conducted a corporate social responsibility initiative where they distributed several tonnes of used clothes throughout Kampala, showcasing their commitment to giving back to the community.
With its strong capitalization and strategic growth initiatives, I&M Bank is well-positioned to further strengthen its presence in the Ugandan banking sector and continue providing valuable financial services to its customers.
