I&M Bank Rwanda reports 17% growth

I&M Bank Rwanda has reported a remarkable 17% year-on-year profit before tax for the first quarter of 2022, showcasing a robust performance amidst challenging economic conditions. In a recent interview with CNBC Africa, CEO Robin Bairstow discussed the driving factors behind this impressive growth and shed light on the bank's strategic initiatives. Bairstow attributed the success to a strong focus on revenue diversification through digital initiatives, the card business, trade business, and the new bank assurance line. Notably, the bank saw a significant uptick in its SME business, with a remarkable 100% growth quarter-on-quarter. Additionally, the agri-business and agri-processing sectors witnessed increased lending activity, along with a surge in retail business, contributing to the overall growth trajectory. Bairstow highlighted the positive performance metrics across various segments, emphasizing steady growth and customer acquisition in key areas. The CEO also discussed the notable 4% year-on-year growth in FISIN commission, driven by successful initiatives such as the roll-out of point-of-sale merchant acquiring business and the card business. Furthermore, the bank witnessed a 4% increase in loans and advances, signaling a rebound from the impact of the COVID-19 pandemic on borrowing activities. Bairstow attributed this growth to robust demand in the corporate sector, particularly in agribusiness and oil and gas industries. The CEO expressed optimism about the bank's momentum going forward, citing a rebound in corporate lending activities post the COVID-related slowdown. With a focus on sectors involved in importing and agri-processing, Bairstow anticipates sustained growth in the coming quarters. In terms of asset management and diversification, I&M Bank Rwanda has been strategically investing in government bonds and treasury bills, alongside alternative high-yielding and low-risk instruments. Bairstow emphasized the bank's efforts to optimize asset utilization and reduce costs through effective resource management and tenancy agreements. The CEO also touched upon the recent Annual General Meeting (AGM), where shareholders approved a dividend payout of 1.2 Rwandan Francs per share. Looking ahead, Bairstow highlighted the sector's outlook amidst challenges such as high inflation rates and global uncertainties. Despite external pressures, the bank remains committed to supporting MSMEs and job preservation, leveraging initiatives like the economic recovery fund and digital lending solutions. Bairstow underscored the importance of digital innovation in driving revenue growth, with a significant portion of transactions now being conducted through digital channels. The CEO emphasized the bank's focus on enhancing customer experience and expanding digital offerings to cater to evolving market demands.