I&M Bank Rwanda reports triple – digit net profit growth of 120%

I&M Bank Rwanda released its financial results for the first quarter of 2024 on May 21, with net profit rising by 120 percent to Rwf 4.8 billion, up from Rwf 2.2 billion in the same period in 2023.

The Bank’s performance of first quarter of 2024 highlighted substantial improvements, driven by strategic initiatives and prudent financial management.

Key profitability metrics saw significant gains, with return on equity (ROE) reaching 23.83 percent and return on assets (ROA) hitting 2.91 percent.

Net interest income rose by 46 percent, fueled by a 29 percent growth in the loan book and continued investment in securities.

Net fees and commission income experienced an exceptional 403 per cent year-on-year increase, reflecting the success of the Bank’s diversified product offerings.

Additionally, foreign currency trading profits climbed by 34 per cent, bolstered by a higher volume of foreign exchange transactions.

Operating expenses rose by 6 percent year-on-year, primarily due to a 19 percent increase in staff costs aimed at human capital development. However, this was partially offset by a decrease in other operating expenses.

The Bank’s proactive approach to managing credit risk and recoveries from previous year resulted in a 186 percent rise in impairment charges.

I&M Bank’s balance sheet and capital position remained robust. The loan portfolio grew by 29 percent year-on-year to Rwf 312 billion, with a healthy gross Non-Performing Loan (NPL) ratio falling to 2.07 percent from 2.4 percent in December 2023.

The Bank maintained strong liquidity, with a total loan to deposits ratio of 63.8 percent and a liquidity coverage ratio of 327 percent.

Deposits surged by 41 percent, reaching Rwf 529 billion as of March 31, 2024, while shareholders' funds grew by 6 percent, driven by a 9 percent increase in retained earnings to Rwf 60 billion.

Commenting on the Bank's first quarter of 2024 performance, Benjamin Mutimura, the Managing Director said, “The implementation of our new Bank strategy is already demonstrating positive results. We are solidifying our presence in core market segments while actively pursuing exciting opportunities in emerging markets. This combined approach ensures sustainable returns for our shareholders in the long term.”

The Bank’s business segments Corporate, Micro, Small, and Medium Enterprises (MSME), and Retail Banking demonstrated impressive growth.

One notable highlight was the MSME segment which saw a 75 percent increase in loans and advances and a 67 percent surge in deposits year-on-year, driven by digital transformation initiatives and innovative campaigns like 'Agiserera' and 'Iyubake'.

As for Corporate Banking, it also performed well, with a 33 percent year-on-year increase in deposits, aided by data analytics and cross-selling strategies.

I&M Bank’s commitment to customer convenience through dedicated MSME and Retail loan centers resulted in significant growth in these segments, with loans to Retail and MSME customers increasing by 20 percent and 75 percent, respectively.

The Bank plans to expand its MSME and Retail business centers and branch network in Kigali and secondary cities, enhancing local decision-making and customer responsiveness.

“Looking ahead, I&M Bank is dedicated to supporting Rwanda's economic development through strategic initiatives and partnerships," noted. "We will focus on critical sectors like agriculture, women's entrepreneurship, youth development, and renewable energy, aiming to positively impact over 2 million lives by 2026."


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