I&M Bank (Rwanda) Plc has released its financial results for the period ending September 30, recording a 71 per cent growth in net profit for the third quarter. The bank’s net earnings grew to Rwf12 billion in the third quarter compared to Rwf7 billion registered in the same quarter last year, driven in part by an increase in net interest income. The bank saw its net interest income grow by 42 per cent to Rwf35 billion, with net fees and commission income growing by nearly Rwf2 billion to Rwf3.2 billion in the same period. This growth was primarily driven by strong loan book growth, strategic investments in securities, and higher interest-bearing cash balances, the bank said in its latest financial statements. Loans and advances to customers grew by 10.7 per cent to Rwf347.6 billion. Growth was observed across all segments, particularly in the MSME and retail loan portfolios. While maintaining a conservative approach to risk management, the cost of risk increased to 2.35 percent. In the same period, operating expenses grew at a slower pace compared to prior quarters. However, a significant year-on-year increase in loss provisioning was noted. According to the bank, this growth highlights enhanced operational efficiency, as a 43 per cent rise in fees and commissions significantly outpaced the 6 per cent growth in related expenses. Foreign currency trading profit also surged by 26 per cent year-on-year, driven by the successful execution of targeted sales strategy and increased customer engagement, resulting in higher transaction volumes, the bank's statement noted. Operating expenses increased by 9 per cent year-on-year, largely attributed to a 25 per cent increase in strategic investments in human capital development to support the growing branch network. ALSO READ: I&M Bank Rwanda introduces WhatsApp Banking 2.0 for seamless customer experience Nine months performance Total deposits grew by 22 per cent from December 2023, reaching Rwf659 billion by September 30. The total loan-to-deposit ratio increased to 52.3 per cent. while the liquidity coverage ratio stood at 398 per cent, ensuring adequate liquidity to meet obligations. Shareholders’ funds increased by 13 per cent, driven by an 18 per cent rise in retained earnings to Rwf65.6 billion. Commenting on the bank's performance, Benjamin Mutimura, Chief Executive Officer, said: “While the global economic environment remains volatile and uncertain, we are pleased to report another strong quarter of performance for I&M Bank Rwanda.” He acknowledged headwinds such as rising interest rates, increased technological costs, and the impact of the Rwandan Franc devaluation. However, he noted that these were offset by positive factors, including steady economic growth, stabilising inflation, and new opportunities in climate finance. “Despite these challenges, we have maintained our growth momentum, driven by our strategic focus on MSMEs and retail segments. Our market share continues to grow at a double-digit rate across key metrics. This performance underscores the effectiveness of our business model and adaptability to changing market conditions,” Mutimura said. He also celebrated the bank's recognition as the Best SME Bank in Rwanda by the Global Banking and Finance Review, marking the second time the institution has received this accolade. ALSO READ: I&M Bank Rwanda PLC wins Best SME Bank in Rwanda award for the second time Mutimura noted the success of Karame, a newly launched customer value proposition under the retail segment. “This initiative positions us as a leading player in the retail banking sector and reflects our dedication to meeting the evolving needs of our customers,” he said. Looking forward, Mutimura expressed optimism about Rwanda’s economic outlook, citing strong GDP growth projections, controlled inflation, and government-led infrastructure and job creation initiatives as significant opportunities for the banking sector. “We are well-positioned to capitalise on these opportunities, particularly in financial inclusion, infrastructure financing, SME lending, digital transformation, and green finance. “By focusing on these areas and maintaining a disciplined approach to risk management, we are confident in our ability to deliver long-term value to our shareholders,” he said.
