I&M Bank Rwanda generated Rwf11 billion profit before tax in third quarter Copy
I&M Bank Rwanda Plc registered a before-tax profit of Rwf10.9 billion in the third quarter of 2023, representing a 7 per cent increase from Rwf10.2 billion registered in the same period of 2022.
This showcases the good performance across three consecutive quarters of 2023, assuring the Bank to meet its annual targets.
Commenting on the performance, Benjamin Mutimura, CEO of I&M Bank Rwanda, said the Bank continues its robust growth, driven by broad-based profit increases across all business segments.
“Strong net interest income and sustained cost control measures are putting us on track to meet our 2023 targets. In Q3 2023, we achieved a 19 percent increase in operating income after impairment losses,” he added.
With the improved margins generated from interest-earning assets related to the 18 percent expansion of the loan book, the Bank experienced a six percent growth in net interest income year-on-year driven by an accelerated pace of lending activity across all segments and a stabilized cost of risk at 61 basis points. Consequently, the Non-Performing Loan (NPL) ratio decreased from 4.2 percent in 2022 to 3.41 percent in 2023.
Currently, the total customer deposits increased by 24 percent, maintaining deposit base stability and diversification, with around 85 percent of customer deposits situated in the less volatile categories of current and savings accounts (CASA).
The Bank's return on equity (ROE) and return on asset (ROA) remained stable at 12.89 percent and 1.82 percent respectively with total assets increasing by 14 percent, consolidating its market share and strong performance. This is while the fees and commissions income grew by 17 percent, reflecting successful efforts to boost revenue through digital transactions.
This underscores the ongoing digital adoption, with 84 percent of all transactions now on digital channels, accompanied by a growing customer base.
Officials also reported a 25 percent increase in operating expenses, reflecting the Bank's commitment to continuous investment in human capital and enhancing customer-facing platforms through technological advancements, aiming to improve operational resilience and customer satisfaction.
In other developments, the Bank maintained its growth momentum in foreign exchange trading, achieving a 75 percent increase in foreign currency trading profits, driven by a strong customer relationship.
With a comprehensive portfolio of personal, business, institutional, and corporate banking products available at its various locations, I&M Bank Rwanda caters to a diverse range of customer needs.
It recently reaffirmed its commitment to drive digital transformation and economic recovery in the country through the launch of online onboarding for individuals and sole proprietors and payment for Irembo Gov services through its payment platforms.
The Bank has also proactively embraced e-Kash interoperability and forged another strategic partnership with Old Mutual, positioning itself as an early adopter. This initiative is a pivotal element of the overarching strategy dedicated to bolstering the growth of Micro, Small, and Medium Enterprises (MSMEs).
