IM Bank Reports 17 Percent Growth in the First Quarter of 2022

I&M Bank headquarters in Kigali

I&M Bank Rwanda PLC has reported a profit before tax of Rwf2.96 Billion, up by 17 percent for the first quarter of 2022.

The financial resulted for the period ended 31st March 2022 showed positive performances across key financial metrics and largely driven by its iMara 2.0 strategy.

The tech based strategy has helped the bank to digitize as a key enabler for business growth in the personal and MSME segments.

Robin Bairstow, the CEO of I&M Bank said: “We have delivered a strong first quarter, built on the solid momentum of 2021 and ongoing execution of our iMara 2.0 strategy. A review of the results shows positive performances across key financial metrics.”

In the Q1-2022 Income statement highlights (vs Q1-2021), the strength of the bank’s performance was reflected in all profitability metrics, with return on equity (ROE) and return on asset (ROA) increasing to 12.14% and 1.61% respectively.

The Bank has reported Rwf 9.3 Billion in net revenue (before impairment provisions), up by 15% year-on-year, driven significantly by an increase in net interest income of 14%.

Fees & Commission (net) were up by 4% year-on-year on the back of improved efficiencies and continued digital adoption.

This has helped drive improvements in efficiency and customer satisfaction, with the Bank’s cost-to-income ratio capped at 59%.

In the reported period, operating expenses increased by 9% year-on-year to RWF 5.5 Billion. As a result, Profit after Tax (PAT) for the first quarter of 2022 was Rwf1.9 Billion, up by 17% year-on-year.

The Bank’s balance sheet remains robust, with the non-performing loan ratio standing at 3.45%, in line with December 2021 levels.

Loans and advances to customers (net) increased by 4% to RWF 231 Billion from RWF 222 Billion (December-2021). The growth was supported by new deals booked across all segments.

Total financial investments increased to RWF 112.2 Billion, up by 23% 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 10% to RWF 359 Billion (Rwf327Billion- December 2021), resulting in a loan-to-deposit ratio of 64%. Borrowings positions for the period were RWF 62 Billion. The liquidity coverage ratio was 528% as of the end of March 2022.

Robin Bairstow, the CEO of I&M Bank

The Bank remains well capitalized with Tier I capital adequacy ratio of 17.54%and Tier II ratio of 20.16%.

Bairstow said the bank’s strong performance was driven by an activity rebound in the economy, with growth noted both on the bank’s loans and advances and deposit liabilities, which led to solid growth in net interest income and net fee income.

In the reported period, he said, our customer base was up by 24% year-on-year, with the highlight being our MSME segment with year-on-year customer growth of 70%.

“We remained anchored around delivering value and excellence in service to our customers. Our investments in state-of-art digital platforms delivered where we have noted a constant in digital services adoption with 75% of all customer-initiated transactions go through our digital channels,” Bairstow said.

As business activities pick up across the country, Bairstow stated that the bank will remain resolute to the core purpose of its brand “We are on your side” and in commitment to support the country’s economic recovery.




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