I&m Group Plc · NSEKE:IMH
I&m — I&M Bank Rwanda — H1 2021 Earnings Presentation
19 slides from I&m's earnings presentation, September 2021
Slide 1: I&M Bank Rwanda Plc H1 2021 Results Investor Presentation
I&M Bank Rwanda Plc H1 2021 Results Investor Presentation September 2021
Slide 2: Table of contents
Table of contents Part 1. Economic Outlook Part 2. Business Highlights Part 3. Financial Highlights & Trend Analysis Part 4. Performance Drivers & Strategy Update Part 5. Disclaimer – Forward-looking statements
Slide 3: Economic Overview
Economic Overview Global conditions Pandemic Impact • The global economy is experiencing a strong but • Rwanda’s GDP recovered in the first half of 2021 with uneven recovery with estimated growth of 6% in 2021 growth of 3.5% driven by a faster recovery of the and 4.9% in 2022. (1) agriculture sector
Slide 4: Rwanda – Banking sector overview
Rwanda – Banking sector overview Sector review 4,502 4,310 • Banking sector assets recorded growth of 20% YoY in 3,476 June 2021 to RWF 4,624Bn from RWF 3,853Bn as of June 3,091 2020. 2,801 2,685 2,647 2,481 2,383 2,190 • The industry remains well capitalized and liquid, with 1,995 1,965 1,778 1,723
Slide 5: Part 2: Business Highlights
Part 2 Business Highlights
Slide 6: H1-21 Business Highlights
H1-21 Business Highlights HY-21 Financial highlights PBT of Rwf 5.2Billion, up by 55% YoY. Rwf 16.3Bn Operating Income Total Operating Income up by 19% YoY. 59.9% Cost: income ratio Positive jaws, +10%. Rwf 3.4Bn Profit After Tax Net impairment provisions decreased by 15% YoY Rwf 210Bn Loans Strong
Slide 7: Part 3: Financial Highlights & Trend Analysis
Part 3 Financial Highlights & Trend Analysis
Slide 8: H1 underlying profit of RWF 5.2 billion, driven by solid operating income growth
H1 underlying profit of RWF 5.2 billion, driven by solid operating income growth (+16% YoY) and lower cost of credit Efficiency ratio - 5% RWF Million June-21 June-20 % Net interest income 13,309 11,229 19 65.0% 59.9% Net fee income 857 768 12 Trading and other income 2,131 2,067 3 June-20 June-21 T
Slide 9: Well-funded, diversified and highly liquid balance sheet
Well-funded, diversified and highly liquid balance sheet (large % contribution from customer deposits) Credit Quality indicators % Var. RWF Billion June-21 Dec-20 June-20 Dec-20 June-21 Dec-20 Loans & Advances 210.2 205.2 206.4 2% NPL Ratio 3.95% 3.51% Financial Investments 96.6 100.9 59.5 -4% Other
Slide 10: Strong capital levels and LCR ratios following covid-19 crisis
Strong capital levels (exceeding minimum regulatory requirement) & already strong LCR Ratios following covid-19 crisis. Capital Adequacy Ratio Liquidity Coverage Ratio 350 22.00% 600% 542% 297 304 300 21.00% 500% 241 19.65% 19.48% 20.00% 250 19.00% 400% 18.27% 339% 200 18.00% 300% 150 16.78% 229% 16
Slide 11: Key ratios reflect business growth and strategy execution
Key ratios reflects the business growth and tangible momentum behind our strategy execution. Dec-20 Jun-21 Liquidity Coverage Ratio, % 541 339 Cost/ Income Ratio, % 57.1 59.9 (*) June-21 computed on annualized PAT Return on Equity (ROAE), % 11.0 11.9* against the average equity. (*) June-21 computed
Slide 12: Part 4: Performance Drivers & Strategy Update
Part 4 Performance Drivers & Strategy Update
Slide 13: Strong underlying performance across all business segments
Continue to maintain a strong underlying performance across all business segments Corporate Banking Business Banking Retail Banking 222.5 222.4 72.1 29.4 28.4 66.3 25.5 55.3 23.1 52.7 109.6 109.9 Dec-20 Jun-21 Dec-20 Jun-21 Dec-20 Jun-21 Loans Deposits Loans Deposits Loans Deposits • Continue to str
Slide 14: Focus on digitalization and revenue diversification
Focus on digitalization and revenue diversification. Key sales achievements Product launch & review • Deployed low-cost deposits attraction strategy; • Launch of WhatsApp Banking in July 2021. • Continued strength in digital adoption with 70% of • Expanded income streams through boosted card Bank’s
Slide 15: Continued our strategy execution
Continued our strategy execution Driving business Building a resilient Optimizing the growth organization operating model • Revenue diversification; • Bank wide automated • Online customer onboarding expansion of income streams. reconciliation system roll-out. • Digitization of loan origination • Sa
Slide 16: Improved prospects and Sustainability; Credit Ratings; Accolades
Improved prospects and Sustainability Credit Ratings • I&M has made a strategic choice to focus both on growing our revenue and enhancing environmental Upgraded GCR Ratings as capital position improves and conservation & sustainability. operating environment pressure eases. Stable Outlook. • Fitted
Slide 17: Part 5: Disclaimer & Forward-Looking Statements
Part 5 Disclaimer & Forward-Looking Statements
Slide 18: Disclaimer
Disclaimer The contents herein have been presented in good faith. The information, statements and opinions set out in this presentation and subsequent discussion do not constitute a public offer for the purposes of any applicable law or an offer to sell or solicitation of any offer to purchase any s
Slide 19: Thank you
Thank you I&M Bank (Rwanda) PLC KN 03 Ave, 9 P.O. BOX 354 Kigali, Rwanda E: [email protected] T: + 250 788 16 2040