I&M Bank Rwanda announces 17% increase in earnings

16th Mar 2018

On 16th March 2018, I&M Bank (Rwanda) Limited announced its audited financial results for the financial year ended 31st December 2017. The Bank reported a net profit of FRW 6.5Billion (USD 11.6Million), a 12% Y-O-Y increase in comparison to FRW 5.8Billion in 2016.

Financial Highlights

The Bank recorded significant growth in business and the highlights from the Financial Statements are presented below:

  • The Bank reported Profit Before Tax (PBT) of FRW 9.85Billion for the year ended 2017, an increase of 17% year on year (y-o-y) resulting in a cost-to-income ratio of 55.8%, compared to 58.1% at the close of 2016.
  • The Bank’s headline earnings per share grew by 11.3% from FRW 11.61 in 2016 to FRW 12.92 in 2017.
  • Interest and similar income increased by 20% year on year to FRW 24.5Bilion (USD 28.9Million).
  • Net Interest income increased by 20% y-o-y to FRW 17.5Billion (USD 20.7Million).
  • Net fees and commission increased by 10% y-o-y to FRW 2.7Billion (USD 3.1Million), with total operating income after loan loss provision reaching FRW 23.6Billion (USD 27Million) representing 10% y-o-y increase.
  • Net non-interest income decreased by 11% year on year to FRW 6.1Billion (USD 7.2Million).
  • The profit after tax was FRW 6.5Billion; an increase of 12% Y-O-Y.
  • ROAA stood at 2.8% compared to an industry average of 1.1% while ROAE stood at 19.9% far above an industry average of 6.2%
  • As at 31 December 2017, the Bank’s Total Assets stood at FRW 260Billion, a y-o-y increase of 26%. Gross Loans increased by 32.3% Y-o-Y to FRW 149.6Billion; while Net Loans and Advances increased by 33% Y-o-Y to FRW 146.5Billion.
  • The Bank’s NPL ratio stood at 2.49% as of 31 December 2017, well below the industry average of 7.6%.
  • Gross Loans to Total Assets ratio stood at 57.5% as at 31 December 2017, increasing from 54.8% in the same period 2016.
  • Customers and other financial institutions deposits reached FRW 209Billion, recording an increase of 30% Y-o-Y.
  • Liquidity ratio of the Bank stood at 47% as at 31 December 2017 against the BNR threshold of 20%.
  • Shareholders’ Equity equalled FRW 35Billion, represent a y-o-y increase of 15.3%
  • For the past five years, The Bank has registered a compounded annual growth rate (CAGR) of 20% of Total Assets, 22% in Loans & Advances and 21% in customers & other financial institutions deposits. The interest and similar income registered a CAGR of 19%, while the Profit before Tax registered a CAGR of 17%, and Profit-After-Tax by 12%
  • Performance Drivers

The Bank’s Managing Director has accredited the performance to the I&M Bank’s passion for customer satisfaction and investment in staff.

In 2017, the Bank embarked on a new five-year Strategic plan, which is based on four growth pillars of Revenue Diversification, Operational Excellence, Digital Channel Optimization and Business Growth built on solid foundations of group synergies, staff training and development and rollout of our new state of the art core banking system.

“With a constantly evolving economic landscape, we have managed to remain relevant and we are doing this by listening to and meeting market needs. We are also now focusing on new business avenues such as support to the SME sector, and partnerships with development agencies to grow targeted segments of market such as export growth and tourism.” – Robin Bairstow

Growth in Assets has been north of 30% while maintaining a low NPL ratio of 2.49% due to improvements in our credit risk assessment and a more effective recoveries strategy.

The 32.3% growth in deposits has been attributed to increased focus on target markets including the development sector, focus on cash management and transactional banking.


Future Projections.

The Bank is committed to pursuing a steady income growth over the next five years with a projected CAGR of 18% on Loans, 19% on Deposits and 18% on Revenues.

We shall also continue to invest in our people with training and development high on our agenda. We are proud of our low staff turnover.

The Bank’s Executive Director and Divisional Head of Business Development, Mr. Faustin Byishimo added that “… based on customer insights and forecast market trends, we shall in the near future be rolling more innovative products for our customers including Treasury products which focus on managing our client’s risk, Bancassurance and Wealth Management.”



Annual General Meeting

Speaking on behalf of the Chairman of the Board, the Managing Director confirmed that the Board of Directors has set the date for the first post-listing Annual General Meeting (the “AGM”) to be held in Kigali on 28th May 2018 at Kigali Convention Centre and all the Bank’s shareholders are invited to attend

Dividend pay-out

The Board of Directors proposes that the AGM approves a dividend pay-out of 40% of the Bank’s audited IFRS-based Net profit in respect of 2017.



CAGR: Compounded Annual Growth Rate

NPL: Non Performing Loans

ROAA: Return on Average Asset

ROAE: Return on Average Equity

Y-o-Y: Year-on-Year