I&M Holdings Limited

I&M Holdings Limited, also I&M Bank Group, is a conglomerate comprising banks, an insurance company and investment advisory businesses. The group's headquarters are located in Nairobi, Kenya, with subsidiaries in Kenya, Mauritius, Rwanda, Tanzania and Uganda. The flagship company of the group is I&M Bank Limited, with headquarters in the I&M Bank Tower on Kenyatta Avenue in the central business district of Nairobi, Kenya's capital and largest city.[3]

I&M Holdings Limited
TypePublic:
KN: IMH
IndustryBanking, Insurance
Founded15 August 1974 (1974-08-15)
Headquarters1 Park Avenue
Nairobi, Kenya
Key people
Daniel Ndonye
Independent Chairman[1]
Sarit Raja-Shah
Group Executive Director[2]
ProductsBanking & Insurance
RevenueIncreaseAftertax:KES:8.13 billion (US$70.8 million) (2021)[2]
Total assetsKES:415.2 billion (US$3.613 billion) (2021)[2]
Websitewww.imbankgroup.com

Overview

I&M Group Plc a large financial services conglomerate, serving the countries of the East African Community and parts of the Indian Ocean Islands. As of December 2021, the company's total assets were KES:415.2 billion (US$3.61 billion), with shareholders' equity of KES:69.6 billion (US$605.8 million). At that time, company maintained subsidiaries in five countries in the African Great Lakes region.[2]

History

I&M Holdings as we now know it is a result of a reverse merger between City Trust Limited and I&M Bank Limited.[4]

City Trust

I&M Holdings Limited was founded in 1950 as City Trust Limited, an investment holding company. The firm was one of the first to list its stock on the Nairobi Securities Exchange.[5]

I&M Bank

I&M Bank was founded in 1974 as Investments & Mortgages Limited, a private company providing personalised financial services to business people in the Nairobi area. The firm converted to a commercial bank in 1996. In 2003, the bank acquired Biashara Bank of Kenya Limited thereby expanding its branch network, client base and assets under management.[6]

In 2010, the group acquired a controlling interest in CF Union Bank of Tanzania, whose assets were estimated at about US$61 million in December 2009. In September 2010, CF Union Bank Tanzania rebranded to I&M Bank (Tanzania).[7] The group was reported to have intentions to expand throughout East Africa through acquisitions.[8]

During 2012, the group acquired a controlling interest in Commercial Bank of Rwanda (BCR), the second-largest commercial bank in the Republic of Rwanda. In 2013 BCR rebranded to I&M Bank (Rwanda), to reflect its current shareholding.[9]

Merger

In 2013, the boards of City Trust and I&M Bank announced a reverse takeover of the latter. A decision that was accepted by shareholders of both companies and completed in June 2013. City Trust's name was changed to I&M Holdings and the I&M Bank's subsidiaries were unbundled from the bank to I&M Holdings.[5]

Post merger

On 7 September 2015 I&M Holdings announced the acquisition of Giro Commercial Bank and merging of its business with that of I&M Bank Kenya. The process, which required regulatory approval,[10] was concluded in February 2017, with Giro Commercial Bank surrendering its banking license and becoming part of I&M Bank Limited.[11]

On 20 July 2020, I&M Holdings Limited signed an agreement with the shareholders of Orient Bank (OBU) in Uganda, committing I&MHL to buy and the owners of OBU to sell 90 percent shareholding in the Ugandan commercial bank. The transaction, which requires regulatory approval in Uganda and Kenya will cost in excess of KES:2 billion (US$20 million).[12]

Member companies

The companies that comprise the I&M Bank Group include, but are not limited, to the following:

  1. I&M Bank Limited – Nairobi, Kenya: The flagship company of the group. A commercial bank in Kenya, serving individuals and businesses, focusing mainly on medium sized corporations.
  2. Bank One Mauritius – Port Louis, Mauritius: The group owns 50% of Bank One Mauritius. The other 50% is owned by CIEL Investments Limited. As of December 2013, total bank assets were approximately US$581.85 million.
  3. I&M Bank Tanzania Limited – Dar-es-Salaam, Tanzania: I&M Bank Group owns 55.03 percent shareholding since 2010. Other investors in I&M Bank Tanzania Limited include: PROPARCO of France, Kibo Fund, a private equity fund based in Mauritius and Michael Shirima, a Tanzanian businessman.[8]
  4. I&M Bank Rwanda Limited – Kigali, Rwanda: In July 2012, I&M Bank Group acquired 54.99 percent shareholding in Commercial Bank of Rwanda (BCR), the second-largest commercial bank in the country at the time, for an undisclosed sum of money. BCR re-branded to I&M Bank Rwanda in August 2013. Total Bank Assets as of December 2013 estimated at approximately US$185.27 million.
  5. I&M Capital – Nairobi, Kenya: A fund management company licensed by the Capital Markets Authority.[13]
  6. GA Insurance – Nairobi, Kenya: Incorporated as General Accident Insurance of Kenya in 1979, the company was acquired by the I&M Bank Group in 2005. Since its acquisition, the company has re-branded as GA Insurance Limited. The company provides various types of insurance cover, including health care coverage.[14]
  7. Burbidge Capital Limited - An investment advisory company with offices in Kenya, Uganda and the United Kingdom.[15][16]
  8. I&M Bank Uganda Limited - Kampala, Uganda: A commercial bank in Uganda, with total banking assets of approximately US$222 million (USh814.3 billion), and shareholders equity of about US$31 million (USh114.1 billion), as of 31 December 2019.[17] Acquisition started in July 2020. Regulatory approval is ongoing and once given, institution is expected to acquire the I&M brand.[12][18]

Ownership

The shares of I&M Holdings Limited are listed on the Nairobi Securities Exchange (NSE), where they trade under the symbol IMHL. As of December 2019 the shareholding of I&M Holdings Limited was as follows:[2]

I&M Bank Group Stock Ownership
RankName of OwnerPercentage Ownership
1Minard Holdings Limited of Kenya21.37
2Tecoma Limited of Kenya18.39
3Ziyungi Limited of Kenya17.79
4CDC Group of the United Kingdom10.13
5Bhagwanji Raja Charitable Foundation Registered Trustees2.56
6Investments & Mortgages Nominees Ltd A/C 00012292.05
7Investments & Mortgages Nominees Ltd A/C 00040472.03
8Investments & Mortgages Nominees Ltd A/C 0029831.33
9Blanford Investments Limited1.11
10Lombard Holdings Limited0.89
11Other shareholders individually not holding more than 5% each22.35
Total100.00

Governance

I&M Holdings Limited is governed by a nine-person Board of Directors. Daniel Ndonye, serves as an Independent Chairman, since 14 June 2013.[1][2] Sarit Raja-Shah serves as the Group Executive Director, effective 14 June 2013.[2]

See also

References
  1. Victor Juma (29 May 2017). "I&M pays Sh820m for stake in TZ subsidiary". Business Daily Africa. Nairobi. Retrieved 23 July 2020.
  2. I&M Holdings Limited (29 March 2021). "Audited Integrated Financial Report 2021" (PDF). I&M Bank Group. Nairobi, Kenya. Retrieved 26 April 2022.
  3. Zandi Shabalala, George Obulutsa and Elaine Hardcastle (10 April 2014). "Kenya's I&M Bank posts 27 pct jump in pretax profit for 2013". Reuters.com. Retrieved 23 July 2020.
  4. I&M Holdings Limited (23 July 2020). "About Us: I&M Holdings Limited". Nairobi: I&M Holdings Limited. Retrieved 23 July 2020.
  5. Mugambi Mutegi (23 January 2013). "I&M directors new billionaires at Nairobi bourse". Business Daily Africa. Nairobi. Retrieved 23 July 2020.
  6. Ecommerce Africa (23 July 2020). "I&M Bank Profile". Ecommerce-Africa.com. Retrieved 23 July 2020.
  7. Tanzania Daily News (19 September 2010). "Tanzania: CF Union Bank Changes Name". Tanzania Daily News via AllAfrica.com. Dar es Salaam. Retrieved 23 July 2020.
  8. Business Daily Africa (15 January 2010). "I&M moves into Tanzania for a regional footprint". Business Daily Africa. Nairobi. Retrieved 23 July 2020. {{cite web}}: |author= has generic name (help)
  9. Ben Gasore (12 August 2013). "Rwanda: BCR Rebrands to I&M Bank". New Times (Rwanda) viaAllAfrica.com. Kigali. Retrieved 23 July 2020.
  10. Charles Mwaniki (7 September 2015). "I&M Holdings in deal to acquire Giro Bank". Business Daily Africa. Nairobi. Retrieved 23 July 2020.
  11. Weitere Mwita (18 February 2017). "I&M takes over Giro Bank after successful acquisition". The Star (Kenya). Nairobi. Retrieved 23 July 2020.
  12. Victor Juma (20 July 2020). "I&M to buy 90pc stake in Uganda's Orient". Business Daily Africa. Nairobi. Retrieved 23 July 2020.
  13. Geoffrey Irungu (2 July 2015). "I&M Capital licensed to run funds". Business Daily Africa. Nairobi. Retrieved 23 July 2020.
  14. GA Insurance Limited (23 July 2020). "GA Insurance Limited: About Us". Nairobi: GA Insurance Limited. Retrieved 23 July 2020.
  15. Business Daily Africa (16 October 2015). "I&M to acquire 65pc of Burbidge Capital". Business Daily Africa. Nairobi. Retrieved 23 July 2020. {{cite web}}: |author= has generic name (help)
  16. Brian Ngugi (18 May 2016). "I&M Holdings owners give the nod for Burbidge Capital takeover". Business Daily Africa. Nairobi. Retrieved 23 July 2020.
  17. Orient Bank (29 April 2020). "Audited Financial Statement for the Year Ended 31 December 2019" (PDF). Kampala: Orient Bank Limited. Retrieved 23 July 2020.
  18. Martin Luther Oketch (22 July 2020). "Sale of Orient Bank awaits BoU approval". Daily Monitor. Kampala. Retrieved 23 July 2020.

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