I&M bank registered marginal growth last year despite bad financial situation over the year.

Sanjeev Anand, the I&M Bank boss, said the bank earned Rwf4.5b profits after tax in 2013 as compared to Rwf4.2b in 2012. Profits before tax were at Rwf6b compared to Rwf6.8b the previous year.

Anand attributed the growth in earnings to product innovation, reduced operational costs, enhanced electric tax payment system, improved mobile and Internet banking platforms, among others.

"To stay alive in the banking industry you have to consistently keep innovating to be able to attract new customers, especially the unbanked masses in the rural areas and urban poor,” Sanjeev said during the launch of the annual financial statement in Kigali yesterday. 

The bank’s loan book grew by 25 per cent to Rwf65.6b, with customer deposits growing from Rwf85.8b in 2012 to Rwf94.1b last year. 

Total deposits increased from Rwf86.6b to Rwf99b. 

Growth was also registered in bank’s total shareholder equity and capitalisation with equity share holding increasing from Rwf15.5b to Rwf18.7b. The bank solvency ratio was 23 per cent against the minimum of 15 per cent.

Average return on equity was at 26 per cent, and liquidity ratio of 54 per cent as compared to 50 per cent for the industry.

Meanwhile, Bill Irwin, the I&M Bank chairman, said the bank would soon introduce mVisa and Visa cards to enable it extend financial services to more people. 

"We are launching products that will support payments to farmers, teachers, facilitate school fees payments, city transport collection and insurance, while enhancing our capacity to process financial services that will provide hands free disbursement of salaries and other forms of payments,” Irwin said in a statement.

According to the National Bank of Rwanda statistics, the financial sector remained robust and healthy, thanks to the implementation of  a strong legal and regulatory frame work and increased loans to the private sector that increased by 12.9 per cent.

Total sector deposits increased from Rwf844b the previous year to Rwf1,018b last year.