I&M Bank Rwanda has reported an after-tax profit of Rwf4.3billion as of September this year, with non-performing loans going down by 51 per cent according to the institution's quarterly reports.
Profit before Tax (PBT) was Rwf6.5billion as at the end of September 2019.
The bank's Non-Performing Loan (NPL) ratio is amongst the lowest in the market at 2.65 per cent - almost half the 5 per cent regulatory threshold.
Customers and other financial institutions deposits reached Rwf242 billion, recording an increase of 5 per cent.
The loans-to-deposit ratio closed at 75 per cent.
Net loans and advances increased by 7 per cent to Rwf180.9 billion.
The bank delivered a consistent performance together with increased investment and lower bad debt costs.
The bank says that they increased investments to enhance future growth prospects as the bank'snet interest income increased by 10 per cent from Rwf14.7 billion in September last year to Rwf16.3 billion in 2019.
Net fees and commissions registered a strong increase of 29 per cent to Rwf1.7 billion in 2019, from Rwf1.3 billion realised in 2018, while bad debt or impairment cost decreased by 51 per cent to Rwf553 million in September 2019 compared to Rwf1.1bn recorded in the same period of 2018.
The statement also shows that operating Income (after impairment provisions) increased by 10 per cent to Rwf20.3 billion, compared to Rwf18.5 billion realised in the same period in 2018.
Operating expenses amounted to Rwf13.8 billion, a 27 per cent increase compared to Rwf10.9 billion due to increased investment costs for future growth.
The Bank's balance sheet remains resilient in the third quarter of 2019 with Total Assets and Shareholders' Funds closing at Rwf319 billion and Rwf40.9 billion respectively.
The bank remains very liquid with the Liquidity Coverage Ratio (LCR) of 285 per cent, above the minimum LCR required by the National Bank of Rwanda of 100 per cent.
For the past five years, the bank has registered a compounded annual growth rate (CAGR) of 17 per cent of total assets, 18 per cent in loans & advances and 15 per cent in customers and other financial institutions deposits.
Commenting on the financial results, the CEO of I&M Bank (Rwanda) Plc, Robin Bairstow, said: "Our performance reflects our continued progress in broadening and diversifying our revenue base."
He said that the past nine months saw significant investments in digitalisation and product development.
"These efforts resulted in a complete overhaul of our digital platform (iClick) and the release of the Bank's Mobile App, supported on all smartphone platforms (Android & IOS alike)," he added.
The bank's partnership with Mastercard has pioneered the first multi-currency prepaid card in Rwanda, highlighting the Bank's ambition to be at the forefront of innovation and providing convenience to its customers.
These investments are essential for the banks future growth, he added.
He said that the bank's loan portfolio saw growth mainly driven by strong business initiatives in key potential areas and strategic partnerships agreements; while maintaining excellent credit quality.
Operating expenses increased by 27 per cent reflecting the strong investment for future growth and incremental costs for a Voluntary Severance Scheme (VSS).
He further stated, "going in the final quarter, we remain focused on providing exceptional service to our esteemed customers leveraging on all our revamped platforms and deliver great end year results to assure sustainable value to our shareholders."