I&M Bank Registers Rwf6.5 Billion in Profit in the First Half of 2022

I&M Bank (Rwanda) PLC delivers 16% growth in headline earnings for the first half year of 2022.

Kigali, Rwanda, 25th August 2022: I&M Bank (Rwanda) PLC has announced its financial results for the period ended 30th June 2022.
Financial performance review

The strength of the bank’s performance is reflected in all profitability metrics. Despite windfalls from investment in the New Headquarter, Return on Equity (ROE) increased to 13.11% and Return on Assets to 1.75%.

• The Bank has reported RWF 19.6 billion in net revenue (before impairment provisions), up by 20% year-on-year, driven significantly by an increase in net interest income of 17%.
• Fees & Commission (net) were up by 25% year-on-year on the back of improved efficiencies and continued digital adoption. This has helped drive improvements in efficiency and customer satisfaction.
• In the reported period, operating expenses increased by 16% year-on-year to RWF 11.3 billion, as the Bank continued to improve productivity across all our products and services. The cost-to-income ratio was 57.79%.

As a result, Profit Before Tax (PBT) for the first half of 2022 was RWF 6.5 billion, up by 25% year-on-year.

Half Year 2022 Balance sheet highlights (vs. Dec 2021)

The Bank’s balance sheet remains robust, with a Tier I capital adequacy ratio of 17.36% and a Tier II ratio of 19.35%.

• Loans & advances to customers (net) increased by 7% to RWF 237 billion from RWF 222 billion (December 2021). The growth was supported by new deals booked across all segments.
• Total financial investments increased to RWF 113 billion, up by 24% from RWF 91.5 billion reported at the end of December 2021, in line with the Bank’s strategy to efficiently deploy capital.
• Deposits held for customers and financial institutions were up by 8% to RWF 352 billion (RWF 327 billion- December 2021), resulting in a loan-to-deposit ratio of 67.36%.
• The total borrowings position for the period was RWF 60.2 billion. The liquidity coverage ratio was 170% as of the end of June 2022.

According to I&M Bank (Rwanda) Plc CEO Robin Bairstow:
“I&M Bank Rwanda has performed well in the first half of the year, delivering returns on equity well over 13%, built on the solid momentum and ongoing execution of our ‘iMara’ strategy.

The Bank’s robust performance was driven by the growth in the loan portfolio and customer deposits, which led to solid growth in the net interest income and non-funded income.”

Mr. Bairstow attributes the lender’s growth to a strategic shift to focus more on customer centricity and digital transformation. Digital adoption remains high with 75% of all customer-initiated transactions going through the lender’s digital channels.

Commenting further on the Bank’s performance, Mr. Bairstow noted:
“The Bank’s efforts have not gone unnoticed. In the first half of the year, we received key industry awards including Best Bank in Rwanda by Capital Finance International (CFI.co), the Gold Gender Equality Seal offered by the Gender Monitoring Office, and the UN for our best practices and policies and diversification agenda.”

As economic activity rebounds in Rwanda, I&M Bank (Rwanda) Plc remains committed to both its customers and employees as a responsible Bank. “Looking ahead, we take notice of the macroeconomic headwinds that are affecting businesses and individuals alike. The Bank will continue to be part of the solution as we continue to support our customers and the community we serve,” added Mr. Bairstow.

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