I&m Group Plc · NSEKE:IMH
I&m — I&M Bank (Rwanda) — FY2021 Earnings Presentation
23 slides from I&m's earnings presentation, 2022
Slide 1: Our core values and brand promise
Our core values Integrity Respect Trust Innovation Courage Our Brand Promise
Slide 2: Index
Index 1 Financial Highlights & Trend Analysis 2 Performance Drivers & Strategy Update 3 Appendix I&M Rwanda - 2021 Earnings Presentation
Slide 3: Disclaimer & Forward-looking statements
Disclaimer & Forward-looking statements 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
Slide 4: Delivered a strong set of results in 2021, reflecting business momentum
Delivered a strong set of results in 2021, reflecting business momentum • Headline Earnings of RWF 53.4 Bn in 2021 (RWF 49.5 Billion in 2020). • Profit before tax of RWF 10.9 Bn: +40% YoY Financials • Net Loans of RWF 222 Bn, + 8% YTD • Improved NPL ratio of 3.45% driven by improvement in macro-econ
Slide 5: 2021 underlying profit of RWF 10.9 Billion
2021 underlying profit of RWF 10.9 Billion, driven by solid headline earnings growth and lower cost of credit. Cost-to-Income ratio % Var vs. RWF Million Dec-21 Dec-20 Dec-19 Dec-20 9% Net interest income 26,876 22,413 21,866 19.9 62.1% 57.1% Net fee income 1,975 1,969 2,241 0.3 Trading and other in
Slide 6: Well-funded, diversified and highly liquid balance sheet
Well-funded, diversified and highly liquid balance sheet (large % contribution from deposits from customers & banks) % Var. Credit Quality indicators RWF Billion Dec-21 Dec-20 Dec-19 Dec-20 Dec-21 Dec-20 Dec-19 Loans & Advances 222.4 205.2 171.9 8% Financial Investments 91.5 100.9 48.5 -9% 3.45% 3.5
Slide 7: Strong capital levels & liquidity Ratios
Strong capital levels & liquidity Ratios Capital Adequacy Ratio Liquidity Coverage Ratio 350 22.00% 600% 317 542% 297 21.00% 504% 300 20.75% 500% 19.65% 20.00% 250 241 19.00% 400% 18.27% 18.08% 200 18.00% 300% 150 16.45% 17.00% 229% 16.00% 200% 100 14.35% 15.00% 50 100% 14.00% 0 13.00% Dec-19 Dec-20
Slide 8: Key ratios reflect business growth and strategy execution
Key ratios reflects the business growth and tangible momentum behind our strategy execution. Dec-19 Dec-20 Dec-21 Return on Equity (ROAE), % 15.1 10.9 15.7 Return on Assets (ROAA), % 2.0 1.39 2.1 Earning per share, RWF 4.97 4.72 6.61 Liquidity Coverage Ratio, % 229 542 504 Cost/ Income Ratio, % 64.7
Slide 9: Index
Index 1 Financial Highlights & Trend Analysis 2 Performance Drivers & Strategy Update 3 Appendix I&M Rwanda - 2021 Earnings Presentation
Slide 10: We continue to be guided by our iMara 2.0 strategy
We continue to be guided by our iMara 2.0 strategy Aspiration Rwanda’s leading Financial Partner for Growth 1. Driving Business Growth 2. Building a Resilient Organisation 3. Optimising the operating model Strategic Pillars And initiatives Enablers Customer Experience Cultural Transformation Strateg
Slide 11: Strong underlying performance across all business segments
Continue to maintain a strong underlying performance across all business segments Corporate Banking Business Banking Retail Banking 72.61 29.4 29.4 66.3 241.4 61.02 222.5 24.4 52.7 23.1 109.6 120.4 Loans Deposits Loans Deposits Loans Deposits Dec-20 Dec-21 Dec-20 Dec-21 Dec-20 Dec-21 • Continue to s
Slide 12: Focus on digitization and revenue generation
Focus on digitization and revenue generation • Deployment of low-cost deposits attraction strategy; • Continued strength in digital adoption with 74% of Bank’s transactions done on alternative channels Key sales achievements • +300K users YTD on SPENN platform. More expected with micro-lending produ
Slide 13: Improved prospects and Sustainability
Improved prospects and Sustainability Accolades Credit Ratings Upgraded GCR Ratings as capital position improves and operating environment pressure eases. “Product Innovation of the Year” by SME Finance Forum Stable Outlook. Awarded for delivering outstanding products and services to our SME clients
Slide 14: Outlook: What Success will look like in 2022
Outlook: What Success will look like in 2022 Active customers on digital channels: from 70% to 73% USD 5.5 Mn PBT: Fees & Commission Income USD 13Mn Card uptake: from 55% to 66% Dormancy: from 25% to 15% 70,000 TNR Market share Customers 10.9% NFR Ratio: from 31% to 33% 13% 12% 33% 8% Retail Portfol
Slide 15: Index
Index 1 Financial Highlights & Trend Analysis 2 Performance Drivers & Strategy Update 3 Appendix I&M Rwanda - 2021 Earnings Presentation
Slide 16: Appendix
Appendix Economic Overview Banking sector overview Our Bank • I&M Bank Journey • Balance Sheet & Quarterly Income Statement I&M Rwanda - 2021 Earnings Presentation
Slide 17: Economic Overview
Economic Overview Global conditions Outlook Review on Rwanda • The global economy is expected to moderate from • Rwanda’s GDP rebounded in 2021 with double digits 5.9% in 2021 to 4.4% in 2022, largely due to supply growth of 10.9% driven by a faster recovery of the chain disruptions, energy price vo
Slide 18: Rwanda – Banking sector overview
Rwanda – Banking sector overview Sector review 5,064 • Banking sector assets recorded growth of 17% YoY in Dec 2021 to RWF 5,064Bn (RWF 4,310Bn in Dec 2020). 4,310 3,476 • Customer deposits increased to RWF 3,087Bn, a 17% YoY 3,091 3,087 growth from the Dec 2020 levels. 2,714 2,685 2,647 2,383 2,190
Slide 19: Appendix
Appendix Economic Overview Banking sector overview Our Bank • I&M Bank Journey • Balance Sheet (5-Year Trend) • Quarterly Income Statement I&M Rwanda - 2021 Earnings Presentation
Slide 20: I&M Journey
I&M JOURNEY 2003: The Government of Rwanda increased the share capital to Frw 7.6 Bn and BCR became 86.8% owned by the Government I&M Bank Rwanda is listed on the Rwanda Stock of Rwanda. Exchange (RSE) 2004: Actis acquired 80% share in BCR after a recapitalization. 1963 2012 2018 2003-4 2017 Digital
Slide 21: Proven continuous growth across key financial metrics
Proven continuous growth across key financial metrics 5-Year Financial Highlights 417.2 (Rwf ‘Billions) 326.9 317.9 298.3 294.2 260.2 243.4 230.9 222.4 209.1 205.2 171.9 169.0 150.7 62.2 54.5 42.8 39.6 35.1 Equity Loans & Advances Total Deposits Total Assets 2017 2018 2019 2020 2021 Loan-to-Deposit
Slide 22: Quarterly Income Statements
Quarterly Income Statements RWF Millions Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Net interest income 5,593 5,637 5,033 6,150 6,656 6,653 6,311 7,256 Net fee income 447 321 622 579 397 455 740 383 Trading and Other Income 1,142 925 1,455 3,287 990 1,149 929 1,526 Total operating income 7,183
Slide 23: 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