I&M Bank Rwanda Reports Significant Profit Increase of 74% in 2024

I&M Bank Plc experienced a 74% rise in net profit to Rwf18.6 billion in 2024, largely due to strategic asset allocation and enhanced operational efficiency. The bank’s assets grew by 20% to Rwf817.9 billion, with a 14% increase in loans and a 22% rise in customer deposits. Digital transaction channels saw significant usage, and sustainability efforts impacted over 620,000 lives. The proposed dividend of Rwf2.46 per share reflects an 80% increase from the previous year.

I&M Bank Plc has reported an impressive 74 percent increase in net profit after tax, reaching Rwf18.6 billion in 2024. This growth is largely due to the strategic allocation of assets in high-yielding investments. Additionally, the bank’s total assets amounted to Rwf817.9 billion, representing a 20 percent increase, resulting in a Return on Assets of 2.54 percent due to improved efficiency.

Chief Executive Officer Benjamin Mutimura emphasized that the bank’s success in 2024 reflects the effective implementation of the iMara 3.0 strategy, which aligns with Rwanda’s economic objectives and prioritizes customer satisfaction. The bank’s loan portfolio also expanded by 14 percent to Rwf356 billion, driven by new products targeted at Micro, Small, and Medium Enterprises (MSMEs) and retail banking clients, including the Agiserera asset finance initiative and “Karame,” which offers seamless banking solutions for retail customers.

Customer deposits surged by 22 percent, reaching Rwf659 billion by December 2024, alongside an increase in the bank’s customer base to over 100,000, facilitated by the opening of five new branches. The bank experienced a 40 percent rise in non-interest income, attributed to investments in high-yielding assets, while income from Net Fees and Commissions grew by 86 percent, thanks to digital innovations. Notably, 88 percent of transactions were processed through digital channels, with 83 percent of clients utilizing these services.

Despite a 14 percent increase in operational expenses, coupled with a controlled 10 percent growth in other expenses, the bank maintained a cost-to-income ratio of 51.2 percent. Shareholders’ equity was bolstered by a 30 percent rise in retained earnings, totaling Rwf72 billion, which has led the board to propose a dividend of Rwf2.46 per share, an 80 percent increase from the previous year. This proposal will be subject to approval at the annual general meeting planned for May 2025.

Mutimura further noted the bank’s dedication to sustainability initiatives, positively affecting over 620,000 lives and progressing towards a paperless operation by the end of the current strategy cycle. He stated that the bank intends to strengthen client relationships, promote sustainable banking, and enhance its digital ecosystem in the future, asserting that “Our commitment to responsible growth, strategic partnerships, and innovation will position us for continued success.” I&M Bank’s achievements in 2024 included recognition as the Best Bank and Best SME Bank in Rwanda as awarded by CFI and Global Finance.

In conclusion, I&M Bank Rwanda has showcased significant growth in 2024, with notable increases in net profit, customer deposits, and non-interest income. The strategic focus on high-yield opportunities and customer-centric products has driven success, along with substantial enhancements to operational efficiency. Furthermore, the bank’s commitment to sustainability and innovation positions it well for future growth. The recognition received also underscores its leadership within the banking sector in Rwanda.

Original Source: www.newtimes.co.rw