Africa-Press – Rwanda. I&M Bank (Rwanda) PLC has announced its financial results for the period ended 30th June 2022 and reported having collected Rwf19.6 billion in net revenue (before impairment provisions), up by 20% year-on-year, driven significantly by an increase in net interest income of 17%.
The Bank’s executives said they managed to make Rwf6.5 billion, up by 25% year-on-year as a result, due to a couple of numerical outcomes from improved efficiencies and continued digital adoption, which helped drive improvements in efficiency and customer satisfaction and thus fetch 25% year-on-year from Fees and Commission (net) for the first half year of 2022 as a reward.
Additionally, despite windfalls from investment in the New Headquarter, return on equity (ROE) increased to 13.11% and Return on Assets (ROA) to 1.75%.
However, the Bank said that numbers in the reported period, operating expenses increased by 16% year-on-year to Rwf11.3 billion, as the Bank continued to improve productivity across all our products and services. The cost-to-income ratio was 57.79%.
H1-2022 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%, with loans and advances to customers (net) having increased by 7% to Rwf237 billion from Rwf222 billion (December 2021).
This impressive growth was supported by new deals booked across all segments as a result of Rwf113 billion from financial investments increased 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.
Notably, deposits held for customers and financial institutions were up by 8% to Rwf 352 billion (Rwf327 billion- December 2021), resulting in a loan-to-deposit ratio of 67.36%. The total borrowings position for the period was Rwf60.2 billion. The liquidity coverage ratio was 170% as of the end of June 2022.
The Bank’s CEO, Robin Bairstow is satisfied with the team’s performance in the first half of the year, and facilitating the Bank to deliver 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,” he said.
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.
The CEO is proud that the Bank’s efforts have been recognized through 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 said it will remain 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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