FY 2017 EARNINGS CALL MARCH -2017
RWANDA MACRO ECONOMIC OUTLOOK
Rwanda Macroeconomic Outlook Rwanda is Poised for Sustainable Growth On The Back of Strong Economic Policies, Burgeoning Regional Growth and Increasing Financial Inclusion The Rwandan Economy has Experienced Steady Growth Supported by Subdued Inflationary Pressure 10% 8% 8% 6% 4% 7% 8% 9% 5% 7% 7% 6% 6% 6% 4% 6% 6% 4% 6% 7% 2% 2% 2% 2% 3% 0% 2010 2011 2012 2013 2014 2015 2016 2017 0% 2010 2011 2012 2013 2014 2015 2016 2017 GDP Growth Inflation Source: IMF, World Bank 1
Rwanda Macroeconomic Outlook (Cont d) Banking GDP exceeded expectation to 6.1 percent, against projected 5.2 percent Main sectors driving the growth: Agriculture (10%), Industry (10%)and Services (11%) Exchange rate pressures eased in 2017 Economic Total Financial sector Assets grew by 13.8% to FRW 4,047Billion from FRW 3.356 Billion in December 2016. Banks portion in Total Financial sector assets is 66.4 percent. Number of operating banks increased from 16 to 17 (CBA launched its operations in February 2017) Source: Deloitte Rwanda Economic Outlook 2016 2
FINANCIAL OVERVIEW
FINANCIAL OVERVIEW Balance Sheet Extracts 2013 2014 2015 2015 2017 Net Loans and Advances 65Bln 83Bln 94Bln 111Bln 148Bln Total Assets 126Bln 150Bln 172Bln 206Bln 260Bln Customer Deposits 94Bln 114Bln 120Bln 134Bln 209Bln Shareholders Funds 18.7Bln 21.6Bln 24.5Bln 30.4Bln 35Bln Key Ratios - Consolidated 2013 2014 2015 2016 2017 Capital Adequacy Ratio 23% 22% 23% 22% 19.8% Liquidity 54% 50% 52% 55% 47% Return on Equity 24% 21% 20% 19% 18.6% Efficiency Ratio 59% 58% 55% 58% 57.3% Loans to Deposits 70% 69% 69% 70% 70%
BALANCE SHEET BREAKDOWN ITEMS December 2016 (FRW 000) December 2017 (FRW 000) Cash In Hand 5,048,664 3,021,548 Due from Other Financial Institutions 46,047,911 53,479,734 Derivative financial Instruments 284,782 68,510 Financial Investment 33,125,028 37,734,381 Loans and Advances to Customers 111,083,056 147,644,624 Other Assets 10,549,419 18,225,395 Total Assets 206,138,860 260,174,192 Deposits from customers & Other financials Institutions 160,859,396 209,130,708 Other payables 6,544,507 7,330,593 Borrowings 6,301,188 6,830,951 Other liabilities 2,010,644 1,817,414 Total Liabilities 175,715,735 225,109,666 Equity (Total) 30,423,125 35,064,526 Total Liabilities and Equity 206,138,860 260,174,192
FINANCIAL OVERVIEW Income Statement Profit and Loss Statement 2013 2014 2015 2016 2017 Net Interest Income 8.8Bln 9.9Bln 11.3Bln 14.5Bln 17.5Bln Total Operating Income 16.7Bln 17.4Bln 19.9Bln 21.4Bln 23.6Bln Operating Expenses (10.3Bln) (10.4Bln) (11.2Bln) (12.4Bln) (13.1Bln) Loan Loss Provisions (299Mln) (1.1Bln) (2.0Bln) (554Bln) (599Bln) Profit Before Tax 6.7Bln 6.4Bln 7.1Bln 8.4Bln 9.8Bln Profit After Tax 4.5Bln 4.5Bln 4.9Bln 5.8Bln 6.5Bln Earnings per Share 901.75 912.32 984.86 11.60 12.92
INCOME STATEMENT BREAKDOWN ITEMS December 2016 (FRW 000) December 2017 (FRW 000) Y-O-Y Var. (%) Interest Income 20,441,506 24,483,000 20% Interest Expense (5,836,180) (6,918,428) 19% Net Interest Income 14,605,326 17,564,572 20% Fees & Commission (Net) 2,411,511 2,660,230 10% Other Income 4,379,532 3,411,823-22% Total Operating Income 21,396,369 23,636,625 10% Net Impairment (losses)/recoveries on financial assets (554,373) (598,745) 8% Operating Expenses (12,426,791) (13,189,549) 6% Profit Before Tax 8,415,205 9,848,331 17% Income Tax Expense 2,612,054 (3,334,930) 28% Profit After Tax 5,803,151 6,513,401 12% Earning per share 11.61 12.92 11.3%
INDUSTRY COMPARATIVE AS AT END DEC 2017 Industry I&M Bank Rwanda Solvency Ratio (Total Capital) 21.4% 19.8% NPLS/ Gross Loans 7.6% 2.49% Provisions/ NPL 46.7% 69.3% Return on Average Assets 1.1% 2.8% Return on Average Equity 6.2% 19.9% Liquid Assets/ Total Deposits 43.7% 46.9% Forex Exposure/ Core Capital -7.8% -9.2% Loans Growth 12.5% 32% Deposit Growth 12.6% 30%
BUSINESS OVERVIEW
I&M BANK RWANDA An Introduction I&M Bank (Rwanda) Limited (formerly Banque Commerciale du Rwanda Limited - BCR) is part of I&M Holdings and the oldest financial institution in Rwanda, having been incorporated in 1963. Following the 2012 acquisition of 80% shares by I&M Holdings from Actis, the Bank now boasts of a regional presence with operations in Tanzania, Mauritius (as Bank One) and headquaters in Kenya. 79.22% 19.62% 0.17% 0.99% The Bank s current shareholding structure is as follows: 79.22%: BCR Investment Company Ltd. 19.62%: Public 0.99% : ESOP (I&M Bank Employees) 0.17% : Individual Investors
I&M BANK HOLDINGS Group Structure 68.74% BCR INVESTMENT COMPANY M A U R I T I U S 65% 100% 100% 100% 50% 80% KENYA KENYA KENYA KENYA M A U R I T I U S R W A N D A 100% 70.3% 100% [I&M Holdings Ltd s effective Holding in I&M (Rwanda) is 55.01%] U G A N D A TA N Z A N I A KENYA
I&M BANK RWANDA A 55-year old story
I&M BANK RWANDA Where we are
CORE COMPETANCIES The I&M Bank Diffference 1 Good Governance 2 Strong Brand and Track Record 3 Focus on Staff Development 4 Wide Customer Base
FUTURE OUTLOOK WHERE WE ARE GOING
FUTURE OUTLOOK Medium Strategy Capacity Development Technology Innovation Process Re-engineering Customer value proposition review Key Investments IT Infrastructure Upgrade New Core Banking System New Head Office Premises Smart Branches A 3D impression of the new premises
Q&A MARCH -2018