I&M Bank Rwanda has sustained its growth momentum into the first three months of 2023, reporting a 12% growth in Profit Before Tax of Rwf3.3 billion against Rwf2.9 billion realized in the same period in 2022.

According to the bank financial results for the period ending on March 31, I&M Bank delivered a 16 per cent growth in headline earnings for the first quarter of 2023.

The profit after tax rose by 12 per cent year-on-year, reaching Rwf2.16 billion.

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The bank’s income statement for quarter one 2023 showed notable improvements compared to the same period in 2022.

Net interest income grew by six percent year-on-year, driven by the growth in net loans and advances, investment in securities, and money market. The costs of funds have been well managed.

Fees and commissions income increased by 38 per cent, showcasing the Bank's effective efforts in diversifying its income streams and expanding its range of financial services.

"The Bank achieved a 98 per cent surge in its performance on foreign exchange trading, primarily due to a substantial 25 per cent increase in transaction volume and the successful utilization of advantageous market conditions,” I&M said in a statement.

"This record performance was made possible through our strong customer relationships and the growth of transactions involving various major currencies. It serves as a testament to the Bank's competence, strategic decision-making capabilities, and agility in seizing opportunities within a constantly evolving market environment.”

Net credit impairment charges as of March 31 were Rwf641 million, down by 23 percent recorded in 2022 on the back of improved macroeconomic conditions resulting in a more favorable credit quality portfolio.

The Bank saw a 24 percent increase in total operating expenses, reflecting its substantial investment in human capital and commitment to leverage technological advancements for driving innovation and maintaining a competitive edge in the market. The impact of higher inflation also influenced this rise in expenses.

"The Bank’s growth in the first three months of 2023 is attributable to the diligent execution of our iMara strategy which continues to yield results,” I&M Bank Rwanda CEO, Robin Bairstow, said.

"The Bank's three business segments, Corporate, MSME, and Retail Banking, experienced growth in their lending portfolios, with a 4% increase since December 2022. Total deposits also grew by 5% during the same period.”

One notable highlight was the MSME segment, which saw a significant rise of 19 per cent in deposits from December 2022 to March 2023, an achievement supported by the implementation of digital solutions, which helped attract new customers, he said.

For the Corporate Banking segment, data analytics enabled cross-selling and establishment of a European desk with dedicated Relationship Managers contributed to a 23% increase in the customer base.

Active customers surpass 71,000

The Retail Banking segment has seen promising results from the implementation of a loan center, as evidenced by a substantial 30 % growth in the customer base.

Currently, an impressive 78 percent of customer-initiated transactions are conducted through I&M Bank’s digital channels. Furthermore, the bank said its customer base has experienced a solid 15 percent year-on-year growth, surpassing 71,000 active customers.

"I&M Bank is fully committed to providing customized solutions and fostering the growth of Rwanda's digital economy,” the statement said.

"Our recent introduction of the 'Cash-Out' feature in SPENN demonstrates our dedication to becoming the premier mobile banking partner in Rwanda. Our unwavering focus on addressing customer needs is apparent in the evolution of SPENN, which has transformed from a mere money transfer solution into a comprehensive mobile banking product,” the statement said.

"We take pride in having disbursed over Rwf4 billion in loans within the initial year, thus extending banking services to the previously unbanked population.”

The bank said it is committed to supporting Rwanda’s economic recovery and executing strategic initiatives including a new Retail banking value proposition, a Digital Loan System, and an MSME Center to drive sustainable growth and provide exceptional customer experiences, with focus on innovative financial solutions, leveraging digital technologies, and maintaining strong customer relationships.