I&M Bank Rwanda posts solid Q3 growth

I&M Bank Rwanda has shown remarkable growth in the third quarter of this year, with profit after tax increasing by 22% to Rwf6.6 billion. The CEO, Robin Bairstow, attributed this success to the bank's strategic focus on revenue diversification, risk resilience, and operational optimization. Bairstow highlighted the bank's strong performance in revenue growth, cost containment, and balance sheet optimization as key factors driving this growth. The bank's emphasis on non-funded income and digital channels has significantly contributed to its financial success. Non-interest income saw a boost of 47%, with digital transactions accounting for 75% of total bank transactions. Additionally, the bank has experienced substantial growth in its deposit book and treasury business, further bolstering its financial performance. However, operating expenses have also seen a 21% increase, primarily attributed to investments in digital rollout and IT costs. Despite this, the bank has maintained an efficiency ratio of 57.4%, showcasing prudent cost management. Bairstow also addressed the challenges posed by rising inflation and interest rates. While inflation has led to a slowdown in loan growth, the bank remains focused on adapting to the changing economic landscape. The recent increase in the policy rate by the central bank has not yet translated into higher interest rates within the banking sector. The bank is closely monitoring the situation and aims to keep interest rates at current levels for as long as possible. Bairstow highlighted the sectors most affected by inflation, such as transport and food, emphasizing the need for strategic decision-making when financing businesses in these sectors. He also discussed the potential impact of inflation on the housing market and FMCG sector, urging vigilance and risk assessment in these areas. Despite the economic challenges posed by inflation, Bairstow expressed optimism about Rwanda's economic growth trajectory, citing ongoing infrastructure development and GDP growth forecasts. He mentioned the economic recovery fund and funding support from development financial institutions as key measures to mitigate the impact of inflation. In response to the central bank's decision to reinstate the reserve ratio to 5%, Bairstow viewed it as a sign of market normalization and highlighted the sufficient liquidity in the banking sector. With a well-capitalized and resilient banking sector, I&M Bank Rwanda is poised to navigate the evolving economic landscape and continue its growth trajectory.