I&M Bank Rwanda generated Rwf12 billion profit before tax in the first half of 2024, rising from Rwf7 billion recorded in the same period last year.

The 67 per cent increase in profit was attributed to the strong momentum in strategy execution that targets both core and emerging business segments, with MSME banking remaining a key earnings driver.

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Commenting on the performance, Benjamin Mutimura, CEO of I&M Bank Rwanda, said there has been growth and profitability of corporate, retail, and transactional banking businesses.

"We are dedicated to fostering strong customer relationships and establishing ourselves as Rwanda’s leading financial partner for MSMEs. By leveraging our exceptional product offerings, we aim to empower businesses through growth and access to financing.”

The Bank’s financial statements indicate a 40 per cent increase in net interest income driven by strategic investments in securities, increased interest-bearing assets, and an expanded loan book by 13 per cent predominantly in commercial and retail segments, fueled by higher lending volumes.

During the period under review, the Bank’s loan portfolio reached RWF 353.4 billion across all segments, particularly in the MSME and consumer loan portfolios while Non-Performing Loans stood at 4.63 per cent.

Non-interest income also increased by 57 per cent, reflecting operational efficiency, following the increase in Net Fees and Commissions income of 143 per cent attributed to an increase in customer banking activities and revenue diversification strategies.

This is while Deposit growth remained strong, surging 27 per cent to Rwf 593 billion by June 30, 2024. The Bank maintained a strong liquidity position with a loan-to-deposits ratio of 58.1 per cent and a liquidity coverage ratio of 441 per cent, ensuring ample resources to meet obligations.

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The retained earnings of Rwf61 billion also enhanced shareholders’ funds which grew by 8 per cent year to date.

To further solidify our MSME focus, the Bank in collaboration with the Mastercard Foundation will fund more than 500 Small and Medium Enterprises (SMEs) in tourism, hospitality, and youth and women-owned business sectors, creating an estimated 12,000 jobs.

This was alongside partnerships with FMO, ACELI, and SIDA poised to expand the lender’s reach to smallholder farmers to become a leading financial partner for growth in the agricultural sector, according to the officials.

Going forward, Mutimura said that the Bank will prioritize prudent balance sheet and capital management to drive lending in key sectors such as agriculture, women’s entrepreneurship, youth development, and renewable energy.

"Our focus will be delivering innovative financial solutions, harnessing digital technologies, and maintaining strong customer relationships.”