Africa-Press – Rwanda. Despite lower than expected business activities, I&M Bank (Rwanda) Plc made a profit before tax of Rwd5.2b as at June 30, 2021. This is a 55% increase of the same period last year.
Operating income is Rwf 14.9b increasing by 20% year on year. This income growth has been driven by increased Net Interest revenue, 19% higher than the same period last year and closed at Rwf13.3b.
The Bank has experienced strong growth in revenues from the loan portfolio and own account trading in high yield securities. Whilst the credit impairment charges have decreased by 15% attributed to the improved macroeconomic conditions and prudent provisioning which was made in 2020.
The team have managed to control costs under trying circumstances and recorded an increase in Total Operating Expenses of only 7% year on year to Rwf 9.8b maintaining positive cost/income jaws of 10% and a cost-to-income ratio of 59.9%.
In the reported period, the Bank’s net loan portfolio closed at Rwf 210Billion. The quality of the loan book portfolio remains resilient with a Non-Performing Loan (NPL) ratio of 3.95% as of end June 2021.
Customer deposits closed the reported quarter at Rwf303b recording an increase of 2% year to date. The loans-to-deposits ratio closed at a credible 69.3%. Tier 1 Capital & Total capital ratio were at 16.78% and 19.48%.
The Bank’s Chairman, Bonaventure Niyibizi said that with a constantly evolving economic landscape in times where the whole world is dealing with a pandemic, “we have managed to remain relevant to our customers and the community we serve.
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“We are doing this by adjusting the way we conduct business to meet market needs and tailoring our products and services to what our customers require with the higly commendable efforts from the Government of Rwanda to contain the transmission of Covid-19,” he added.
“…We have been focusing on growing our support to the MSME sector which we believe is the backbone of the Rwandan economy, we have also invested in technology to maintain our reputation as a Bank of the future.
” The chairman further added: “We have now moved into our iconic new head office. The building is environment friendly with one of the lowest carbon footprints in the country.
We believe our customers and employees will find this a conducive, productive and stimulating environment. ” The Bank’s commendable performance is attributable to a professional team and committed employees and shareholders readiness to increase the capital.
The Managing Director, Mr. Robin Bairstow, underscored significant investment made during the first half of 2021. “Our focus remains on supporting customers, revenue growth and efficient cost control.
Together with our continuous investment in digital innovation for an improved revenue generation mix with more than seventy percent of all customer transactions initiated via digital or non-traditional channels,” he said. The Bank’s strong performance is underpinned by the commitment and drive of our people.
He went on to say: “The Bank has progressed on its strategic effort to create long-term value for stakeholders, through continued investments in Environmental, Social and Governance initiatives as a means to building resilience as well as to mitigate against emergent operational, cyber and credit risk.
I&M Bank (Rwanda) PLC was recognized as the best bank (2021) by Capital Finance International (CFI. co) recognized the Bank’s product offering, strategy, short-term and medium growth plans as well as client diversity.
