December 6, 2022

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I&M Bank Rwanda PLC delivers 21% growth in headline earnings for the Third Quarter of 2022

Kigali, Rwanda, I&M Bank (Rwanda) PLC has announced its financial results for the period ending 30th September 2022. 

I&M Bank (Rwanda) PLC has sustained its growth momentum into the first nine months of 2022, with the Bank reporting a 22% growth in Profit Before Tax to RWF 10.2 Billion against RWF 8.3 Billion realized in the same period in 2021.

Key Financial Performance

Income statement highlights (Q3-2022 vs Q3-2021)

The strength of the bank’s performance was reflected in all profitability metrics and underscores our ability to deliver long-term value.

  • The Bank has reported RWF 30.5 billion in net revenue (before impairment provisions), up by 25% year-on-year. This was supported by growth in net interest income of 20% year-on-year and a result of a better product mix. It was further supported by a build-out of Non funded Income up by 47% year-on-year.
  • In the reported period, operating expenses increased by 21% year-on-year to RWF 17.5 billion, in line with business growth and the continued deployment of Technology to improve customer services and our product lines. The cost-to-income ratio was 57.8%.
  • As a result, Profit After Tax (PAT) for the reported period was RWF 6.6 Billion, up by 22%.

Balance sheet highlights (Q3-2022 vs. Dec 2021)

  • The Bank’s balance sheet remains robust, with a Tier I capital adequacy ratio of 17.84% and a Tier II ratio of 19.84%. Loans & advances to customers (net) increased by 9% to RWF 243 Billion from RWF 222 Billion (December 2021). 
  • Total financial investments increased to RWF 119 Billion, up by 30% 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 7% to RWF 350 billion (RWF 327Billion- December 2021), resulting in a loan-to-deposit ratio of 69.4%.
  • The borrowings position for the period was RWF 59.0 billion. The liquidity coverage ratio was 262% as of the end of September 2022. 

Commenting on the results, I&M Bank, Rwanda Plc, CEO Robin Bairstow said: “The Bank’s growth in the first nine months of 2022 is attributable to the diligent execution of our iMara strategy which continues to yield results.

Our 3 business segments (Corporate, Business & Retail Banking) delivered with a lending portfolio growth of 9% since December 2021 and a total deposits growth of 7% in the same period.”

The Bank continued to see growth in its customer base by 32% year-on-year – driven primarily by a proactive sales team across our branch network. Segment-wise, the highlight is our Business Banking (MSME) segment growing its customer base by 46% year-on-year, and Corporate and Retail Banking grew by 38% and 30% respectively.

We continue to see high customer activity on our digital channels, with 74% of all customer-initiated transactions going through our online or mobile channels.”

I&M Bank Rwanda also held the “Ganza na I&M” MSME campaign awarding ceremony where 4 customers were awarded capital injection for their projects, financial advisory services, and a multimedia package. The “Ganza na I&M” campaign was launched to support MSMEs as they recover from post-COVID-19 pandemic challenges. 

Additionally, the Board and Management reaffirmed their commitment to a customer-centric strategy through their recent community outreach in Rubavu and Musanze to learn more about their operations and ways in which the Bank could deliver new and relevant solutions.

Commenting further on the full-year outlook, Mr. Bairstow noted: 

Looking ahead, we expect headwinds and inflationary pressures in the macroeconomic environment. Our Bank remains focused on supporting our customers to navigate today’s business conditions. And we will continue maintaining an appropriate balance between investment in the business, maintaining a strong capital position, and delivering attractive returns to our shareholders.”

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