I&M Bank Rwanda reported a 72.1 percent increase in net profit for the first half of 2024, attributing the strong performance to its robust business model and operational excellence. The bank emphasized that these factors have consistently enabled it to maximize shareholder value.
Net earnings rose to Rwf8.01 billion in the six months ended June 30, up from Rwf4.65 billion in the same period last year, the lender said in a statement.
“Building on our momentum, we achieved another strong quarter. Our core MSME Banking business remains a key driver of earnings, and we are pleased with the growth and profitability of our Corporate, Retail, and Transactional Banking businesses,” I&M Bank Rwanda, Chief Executive Officer, Benjamin Mutimura said.
“These results validate the bank’s strategic investments and deliver value to our shareholders. We express our sincere gratitude to our partners and stakeholders for their continued support and collaboration,” Mutimura added.
Data released by the bank shows that net interest income surged by 40 percent, primarily driven by strong loan growth, strategic investments in securities, and increased earnings from other interest-bearing assets. Year to date, the loan book expanded by 12 percent, predominantly in the commercial and retail segments, fueled by higher lending volumes.
Mutimura noted that the bank is dedicated to fostering strong customer relationships and establishing itself as Rwanda’s leading financial partner for MSMEs. “By leveraging our exceptional product offerings, we aim to empower businesses through growth and access to financing,” he said.
“To further solidify our MSME focus, the bank has formed a strategic alliance with the MasterCard Foundation to fund 500 SMEs in the tourism, hospitality, and youth- and women-owned business sectors, creating an estimated 12,000 jobs. Additionally, partnerships with FMO, ACELI, and SIDA will enable us to expand our reach to smallholder farmers, reinforcing our position as a leading financial partner for growth in the agricultural sector,” Mutimura added.
Year to date, the bank’s loan portfolio expanded by 12 percent to Rwf353.4 billion, driven by growth across all segments, particularly in MSME and consumer loans. Despite maintaining a conservative approach to risk management, the cost of risk increased to 2.45 percent, while asset quality was impacted as the gross non-performing loan (NPL) ratio rose to 4.63 percent from 2.41 percent in December 2023.
