I&M Bank (Rwanda) Plc grew its loan book in the first nine months of 2020 by 21 per cent from Rwf172B to Rwf 208B as of end September 2020, the financier’s financials show. Despite the pandemic, economic slowdown and uncertainty, the Bank maintained operations including lending to its clients. In 9 month period ending September 2020, the Bank maintained profitability despite the Covid-19 pandemic which has disrupted multiple sectors of the economy. The drop in profit in after tax by 12 per cent is resultant out of efforts to prevent potential future loan losses from non-performing loans as a consequence on the pandemic, whereby the Bank increased its impairment provisions by more than fivefold compared to last year. This resulted in an overall decrease in the bottom line profitability by 12 per cent Year on Year, with the reported Profit-After-Tax of Rwf 3.8Billion. Robin Bairstow, Chief Executive Officer of I&M Bank (Rwanda) Plc. said that in response to the pandemic and consequent economic shocks, they rolled out a number of strategies to keep financing the market. “Despite the current economic realities, the Bank has managed to be on strategy. It is a testament to the loyalty of our customers and unwavering dedication of our staff. This has allowed the Bank to record good growth in our third quarter results. Most notably, our loan book portfolio growth,” he said. Operating costs of the Bank remained stable at Rwf 13.7Billion for the 9 months period compared to Rwf 13.8Billion compared to the same period last year. The Bank closed the third quarter of 2020 with total assets of Rwf 382Billion and shareholders’ funds of Rwf 45.1Billion, 20 per cent growth and 6 per cent growth respectively since the beginning of the year. The Bank’s remained adequately capitalized during the year and grew its capital base following the Rights Issue which presented a chance for existing shareholders the opportunity to increase their stake in the Bank by buying 1 new share for every 5 ordinary shares. “Following our AGM in June 2020, the Bank took important steps to raise our capital base with a purpose to boost the technology capacity as well as growing the Business. On the 30th October 2020, the Bank concluded its Rights Issue exercise of a gross amount of Rwf 7.9B which was oversubscribed by 112 per cent,” Bairstow said. During the first 9 months of 2020, the Bank signed a loan agreement with a Dutch Development Bank, Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) for an amount of USD 15M to support the SMEs sector. Going forward, Bairstow expressed confidence as the lender’s ability continue and make the most of expansion and maximization of digital platforms, which include addition of hardware, software, adjustment of system infrastructure as well as other pre-requisites such as cyber-security protocols. “We remain optimistic and continue to build on our commitment to leverage our digital strategy to improve customer experience and become a banking powerhouse in the region,” he said. I&M Bank Rwanda spends over Rwf3Billion annually on technology which is expected to go up over time. The lender has plans to maintain support of local Small and Medium Enterprises which have the largest impact on the economy in multiple aspects such as job creation and value chains. On the recent re-brand, Bairstow, added: “The new I&M logo draws inspiration from a DNA strand to highlight the Bank’s evolution and growth over time. We would like to reaffirm our commitment to be your financial growth partner”.
