I&M Bank records high profit growth

m_I&M Bank records high profit growth

I&M Bank has experienced a growth in loans and advances of 25 per cent to Rwf 65.6 billion of which more than 60 per cent was availed to small medium enterprises (SMEs) and retail clients.

Customer deposits grew from Rwf85.8 billion to Rwf94.1 billion sighting almost a 10 percent increase as the bank registered more than 2000 new accounts. Total deposits grew from Rwf86.6 billion in 2012 to Rwf99 billion in 2013.

Overall total shareholder equity also improved substantially from Rwf15.5 billion in 2012 to Rwf18.7 billion in 2013. Apparently the bank (formerly BCR) was rebranded in 2013 to I&M Bank.

The bank earned Rwf4.5b profits after tax in 2013 as compared to Rwf4.2b in 2012. Profits before tax were at Rwf6b compared to Rwf6.8b the previous year.

This growth has been attributed to the introduction of new competitive products in the past year was seen as a major driving tool in achieving the results more so in a year when the overall sector performance was seen to stagnant.

“Our ability to be the leaders in rolling out innovative products was a benchmark for the above average performance,” Sanjeev Anand the Bank’s Managing Director.

Capitalization was strong with a solvency ratio of 23 percent as against the minimum prescribed 15 percent set by the national regulator.

Liquidity ratio was 54 percent compared to 50 percent of the industry thus reflecting ample liquidity return on average equity was 26 percent compared the industry’s 7 percent, thereby indicating an efficient deployment of shareholders.

 The bank also kept its operating costs under control at Rwf10.3 billion as compared to 10.2 billion in 2012.

In a bid to maintain its growth and increase its market threshold this year-2014, the bank is set to open two nationwide branches, in The Eastern province of the country as it seeks to increase its retail clientele in the country.

The bank is set to launch the MVisa platform in May this year, a product also aimed at banking the unbanked clientele. The MVisa platform follows the recent launch of the Cardless ATM platform that also enables customers without bank accounts but with access to mobile money access cash.

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