Q3 2021 I&M Bank (Rwanda) delivers solid results

I&M Bank (Rwanda) PLC  delivers a 45 percent growth in Profit Before  Tax   on  the back  of continued investments in  digital solutions  for its customers.

Kigali, Rwanda, 30th November 2021: I&M Bank (Rwanda) PLC has announced its financial results for the period ended 30th September 2021

In line  with  the  favorable momentum in  the local economy,  the Bank has reported profits before  tax  of RWF 8.3 Billion  for  the  first nine months  of 2021, up  from RWF 5.8 Billion recorded in  the same period last  year. Commenting  on  the  financial results, Mr. Robin Bairstow,  the  CEO  of I&M Bank (Rwanda) PLC said: 

“Our  results  highlight  our  efforts  in  improving  our  digital  infrastructure  in  line  with  our  strategy  and  aspiration  to  be  Rwanda’s leading  financial partner  for growth.  We  will continue building state-of-the-art  digital platforms and growing  the MSME sector  which significantly supports  the Rwandan economy.”

KEY FINANCIAL PERFORMANCE 

During  the period under review,  the Bank’s balance sheet and income metrics improved  on  the backdrop  of a solid capital base and liquidity.

BALANCE SHEET HIGHLIGHTS 

•  The Bank’s asset base rose  to RWF 435 billion, reflecting a 4%  year  on  year growth as a result  of an increase in  the loan book and investments in government securities. 

•  The Bank’s customer lending portfolio grew by 6%  to RWF 217 billion in  September 2021 (RWF 205 billion in  September 2020). •  The quality  of  the loan book improved  with  the NPL ratio  of 3.6 % 

•  The Bank closed the period  with RWF 298 billion  of customer’s  deposits, and a loan-to-deposit ratio  of 73%. The Liquidity coverage ratio stood at 415% as at end  September 2021 

•  The Shareholder’s  Equity  of  the  Bank  grew  to  RWF  60  billion,  up  from  RWF  54  billion  as  at  31st  December  2020. The  Bank’s  capital position remained strong  with Tier 1 &  Tier 2  CAR being at 16% and 19% respectively

INCOME STATEMENT HIGHLIGHTS 

•  The Bank recorded a profit after tax of RWF 5.4 billion, reflecting a 46% growth  over last  year. This  has been supported by increased net interest income  which rose by 21%  from  the levels in 2020, closing  the period at RWF 20 billion 

•  The operating income  for  the Bank increased  to RWF 24 billion,  a 15% increase  year  on  year. 

•  The Bank’s net  fees and commission income increased by 14%  on  the back  of income  from  digital products and an increase in  off balance sheet income. 

•  The Bank improved its cost-to-income ratio  to 60%  from 64%  for  the  year before,  while also maintaining a positive cost/income jaws (after impairment)  of 11%. 

•  The  total  operating  expenses  for  the Bank  was at RWF 14 billion,  which reflected a 6.7%  year  on  year increase  on account  of increased investment in  digitisation. 

•  The Bank’s loan impairment charges  for  the period stood at RWF 1.5 billion,  which is 20% lower  year  on  year, in light  of improved macroeconomic conditions and  despite a challenging start  of  the  year  for all stakeholders.

COMMITMENT TO CREATING VALUE 

Commenting on the Bank’s commitment to create long term value to all the stakeholders, the CEO Mr. Bairstow said “Underpinning our performance is  our commitment  to being  there  for  our customers and  for  the community  we serve.  Throughout  this pandemic period, we lent  our  full  weight  on safeguarding  the lives and livelihoods  of  our staff  through implementation  of remote  working, as  well as conducting staff  wellbeing and mental-health programs. For  our customers,  we created long  term  value by leading  from  the  front in  the f ight against  COVID-19  through moratoria, government supported lending and  other support measures. Through  the IFE grant,  the bank has helped  to retain  over 1,900 jobs in 139 MSMEs”.

CONTINUED INVESTMENT IN DIGITAL SOLUTIONS

 Speaking  on  the Bank’s commitment  to continuously support innovation  through  offering  digital solutions  to customers, Mr. Bairstow said, “We have significantly sustained  our contribution in  the  financial sector  over  the  years.  We remain committed  to  diversifying our  financial services and leveraging  on existing  opportunities  to better serve  the Rwandan population  through investments and partnerships  in new  technologies.  Our efforts  in supporting  the growth  of  the MSME  sector  was recognized  with  the  Product Innovation of  the  Year  Gold  Award at  the  Global Finance  Awards 2021  organized by  the  SME Finance Forum in partnership  with International Finance  Corporation  (IFC)  for  delivering  outstanding  products  and services  to  our  SME clients  and  segment.  Our  MSME  division  has recorded a customer base growth  of 65%  over  the last  year.  We  will continue  to make major investments in  digital  technology in line with  the I&M  Group strategy  that places  digitisation as a key growth accelerator”.

In  Q4  the Bank  will continue investing in  digital products and services as  well as supporting its customers so as  to manage net interest income. Further it  will continue applying cost management best practices  to ensure  that healthy margins are maintained. 

Source: https://www.imbankgroup.com/rw/news/im-bank-rwanda-delivers-solid-q3-2021-results/