I&M Bank Rwanda straddles into 22% solid profits

I&M Bank Rwanda has reported a solid top-line growth with a 22 percent increase in profitability, posting a net profit of Rwf9.3 billion. The bank's board also approved a dividend pay-out of Rwf1.84 per share, reflecting the positive financial performance. CNBC Africa recently sat down with Robin Bairstow, the CEO of I&M Bank Rwanda, to discuss the bank's financial results and strategic outlook. Bairstow expressed satisfaction with the record headline earnings, which were up by 27 percent year-on-year, reaching R42.46 billion in Rwandan francs. He attributed the growth to a strong performance across all business segments, highlighting the success of the treasury team and the bond portfolio. Additionally, Bairstow praised the bank's SME business, which saw a 35 percent increase in new-to-bank customers, underscoring the importance of diversifying revenue streams. Despite a rise in operating expenses, the bank managed to decrease its cost-to-income ratio from 62% to 60%, demonstrating effective cost control measures. Bairstow emphasized the bank's focus on digitization and customer experience, with a target to increase digital transactions from 78% to 90% in 2023. This strategic approach is expected to drive non-interest revenue and enhance customer engagement. The bank has invested significantly in cybersecurity, allocating over $5 million in the past four years to safeguard its online channels. Looking ahead, Bairstow identified key sectors that are poised to fuel growth, such as services, manufacturing, hotel tourism, and agriculture. The bank aims to expand its exposure to the agricultural sector, including row cropping and market gardens, to capitalize on emerging opportunities in the market. As I&M Bank Rwanda navigates the evolving economic landscape, its strong financial performance and strategic initiatives position it well for sustained growth and value creation.