I&M Bank (Rwanda) PLC has announced a Profit Before Tax of Rwf13.4 billion, representing a 22% increase in profitability from Rwf10.9 billion reported during a similar period in 2021, overcoming the environment of successive socio-economic headwinds.
The Bank’s CEO Robin Bairstow addressed a press conference on Thursday afternoon and shared details of the bank’s impressive performance in 2022 is a demonstration of the wider I&M Group’s ability to manage various economic challenges while capitalising on growth opportunities and leveraging our digital capabilities to provide exceptional customer experiences.
2022 Financial Performance (vs 2021)
Income Statement highlights
- The Bank reported Rwf42.4 Billion in net revenue before impairment charges in 2022, up 27% year-on-year, driven by an increase in net interest income of 19%, increase in fees and commissions of 20% and a 25% increase in net foreign exchange income year-on-year on the back of proper execution of revenue-generating strategic initiatives and continued growth in digital transactions.
- The growth in digital adoption (78% of all customer-initiated transactions in the Bank are now going through digital channels) helped improve efficiency and customer satisfaction, with the Bank’s cost-to-income ratio at 60.4%.
- Operating Expenses for the year were Rwf25.6 billion versus Rwf20.7 billion for the same period in 2021 due to an increase in revenue, growth in business line and continuous investment in information technology.
- Net credit impairment charges as of December 31, 2022 were Rwf3.3 billion, up from Rwf1.7 Billion recorded in 2021 on the back of successive socio-economic shocks.
- As a result, profit after tax for the period was Rwf 9.3 billion.
Balance Sheet highlights
- Net customer loans in 2022 increased by 4% year-on-year to Rwf231.7 billion from Rwf222.4 billion. The growth was supported by new deals booked across all segments and improvements in credit quality with the NPL ratio well managed at 4.2%.
- Total financial investments as of December 31, 2022 were Rwf136.9 Billion (2021: Rwf 91.5 Billion).
- Deposits held for customers and financial institutions were up by 9% to Rwf357.4 Billion, resulting in a loan-to-deposit ratio of 63.21%. The borrowings for the period stood at Rwf47.5 billion.
- The liquidity coverage ratio was 339% as of December 2022.
- The Bank’s capital position remained strong with common equity tier 1 & tier 2 of 19.3% and 20.7% respectively.
The Bank’s financial performance in 2022 yielded earnings per share of Rwf6.15 and in that regard, the Board of Directors of I&M Bank Rwanda has recommended the payment of Rwf1.84 dividend per share a 55% increase over the prior year, to be approved during the Annual General Meeting of shareholders.
The Board Chairman, Bonaventure Niyibizi, said that the board is committed to creating long-term value for all stakeholders, including customers, shareholders, and the broader community we operate in. We believe sustainable and inclusive growth is the key to achieving this goal, and we remain dedicated to this principle.
The Bank credits its strong performance to a focus on service delivery and a digital-first approach.
Bairstow noted that these results are a credit to our customer relationships and the hard work of all our staff.
“We remain dedicated to delivering on our promise to be a dependable and trusted financial partner for growth while skillfully navigating through challenging macroeconomic headwinds with resilience and soundness. Furthermore, we continue to see good progress across our performance metrics, which remain in line with our focus on driving sustainable growth,” he said.
“I would also like to take this opportunity to highlight our recent achievements, having been awarded the Gender Equality Seal by the Gender Monitoring office and, for the second year in a row, the Best Bank in Rwanda award by CFI. These recognitions are an acknowledgment of our commitment to promoting diversity, inclusivity, and excellence in all our operations. We will continue investing in our people, technology, and communities to build a better future for all”. Bairstow noted.
Outlook for 2023
On the outlook for the coming year, Bairstow revealed that the bank is in its the final year of iMara 2.0 strategy which we are on track to achieve.
“We are optimistic about the outlook for the banking industry as we have grown solid capital ratios, a strong balance sheet and sound liquidity positions despite geopolitical and macroeconomic headwinds. We believe that our focus on small and medium-sized businesses, wealth management, and digital innovation will position us well for success. To support this growth we will continue investing in technology to enhance our customer experience and improve operational efficiency”.