I&m Group Plc · NSEKE:IMH
I&m — I&M Bank Rwanda — Q1 2020 Earnings Presentation
27 slides from I&m's earnings presentation, 2020
Slide 1: Investing for Growth – Quarter 1 2020 Investor Briefing
INVESTING FOR GROWTH QUARTER 1 2020 INVESTOR BRIEFING
Slide 2: Outline
OUTLINE 1. GLOBAL ECONOMIC OUTLOOK 2. RWANDA BUSINESS OVERVIEW 3. OUR BANK 4. BUSINESS OVERVIEW 5. FUTURE OUTLOOK 6. COVID-19 STRATEGY & UPDATE I&M Rwanda - Investor Briefing – Q1 2020 2
Slide 3: Global Economic Outlook
= Dd OF KENYA ¢ TANZANIA ¢ RWANDA ¢ MAURITIUS GLOBAL ECONOMIC OUTLOOK
Slide 4: Economic Review – Global
ECONOMIC REVIEW – GLOBAL • The global economy experienced a contraction in the first quarter of 2020, • In the Sub-Saharan Africa region, despite a late arrival, the COVID-19 outbreak following the COVID-19 pandemic, defying the 2.5 percent growth earlier has spread rapidly across the region. projec
Slide 5: Rwanda Business Environment
RWANDA BUSINESS ENVIRONMENT
Slide 6: Economic Review – Rwanda
ECONOMIC REVIEW – RWANDA • Disruption to international flow of goods and services and a general global Rwandan government’ priorities to deal with the impact of the pandemic: economic decline are impacting the country’s exports and the tourism sector, contain the spread of the disease and strength
Slide 7: Rwanda – Country Profile & Business Environment
RWANDA – COUNTRY PROFILE & BUSINESS ENVIRONMENT COUNTRY PROFILE Q1 2020 Business Environment Area 26,338 sq. km • Ranked 2nd Best destination to do business in Africa by the World Population 12,374,397 (2019 proj) Bank 2020 Doing Business Report & 38th Globally. Capital Kigali • Rwanda is marked by
Slide 8: Our Bank
= Dd OF KENYA ¢ TANZANIA ¢ RWANDA ¢ MAURITIUS OUR BANK
Slide 9: Financial Overview – Income Statement
FINANCIAL OVERVIEW – INCOME STATEMENT Rwf ‘Billions Mar-19 Mar-20 % var. Notes • ROAE stood at 13.9%, against an industry average Net Interest Income 5.162 5.634 9.1% of 11.8%, as of March 2020. • ROAA stood at 1.78%, slightly below industry average of 2.11% Fees &Commissions 0.468 0.447 -4.5% • EPS
Slide 10: Financial Overview – Balance Sheet
FINANCIAL OVERVIEW – BALANCE SHEET TOTAL ASSETS (RWF ‘BILLIONS) DEPOSITS (RWF ‘BILLIONS) 265 348 9% 9.5% 318 243 Dec-19 Mar-20 Dec-19 Mar-20 Dec-19 Mar-20 Dec-19 Mar-20 LOANS (RWF ‘BILLIONS) SHAREHOLDERS’ FUNDS (RWF ‘BILLIONS) 17% 201 44 4% 172 43 Dec-19 Mar-20 Dec-19 Mar-20 Dec-19 Mar-20 Dec-19 Mar
Slide 11: Financial Overview – Industry Review
FINANCIAL OVERVIEW – INDUSTRY REVIEW As at 31 March 2020 Industry I&M Bank Rwanda CAR (Tier 2) 24.9% 16.9% NPL Ratio 5.5% 2.1% LCR 202% 148% NSFR 135% 143% Loan-to-Deposit ratio 94.1% 75.8% ROAE 11.8% 13.9% ___________________________ Source: BNR – Statistics Department I&M Rwanda - Investor Briefin
Slide 12: Rwanda – Banking Sector Overview
RWANDA – BANKING SECTOR OVERVIEW OVERVIEW Banking Sector Statistics • The sector is comprised of 11 Commercial Banks, 3 Micro finance banks, 1 Development Bank & 1 Cooperative Bank. • Loans & Advances remains the largest component of Bank’s Assets RWF ‘Billions 3,643 3,476 at 55.9% (March 2020) 3,16
Slide 13: Business Overview
= Dd OF KENYA ¢ TANZANIA ¢ RWANDA ¢ MAURITIUS BUSINESS OVERVIEW
Slide 14: Segment Distribution - Deposit & Loan Portfolio Structure
SEGMENT DISTRIBUTION - Deposit & Loan Portfolio structure Deposit breakdown (Rwf ‘Billions) Loan portfolio (Rwf ‘Billions) 47.2 38.3 42.9 21.6 59.0 18.8 22.1 47.7 51.3 31.2 30.4 29.9 180.1 178.4 196.8 111.0 94.5 90.7 Mar-19 Dec-19 Mar-20 Mar-19 Dec-19 Mar-20 Corporate Banking Business Banking Retail
Slide 15: Sectorial Distribution of Loans & Advances
Sectorial distribution of Loans & Advances Transport & Communication 36,093 22,804 Trade & Commerce 40,851 43,093 Others 37,115 Rwf ‘Billions 30,418 Manufacturing 37,593 32,241 Building & Construction 51,088 45,529 Agriculture 3,433 2,232 Mar-20 Dec-19 I&M Rwanda - Investor Briefing – Q1 2020 15
Slide 16: Recent Developments
RECENT DEVELOPMENTS MSME VALUE PROPOSITION – END-TO-END REVIEW • Soft launch of “Ganza na I&M” in Quarter 1 of 2020 • Customer value propositions revised • Products, Business model & Sales strategy • Credit Risk Management SPENN • >250k sign-ups • +7000 Business registered to-date • Average +170Mn t
Slide 17: Future Outlook
= Dd OF KENYA ¢ TANZANIA ¢ RWANDA ¢ MAURITIUS FUTURE OUTLOOK
Slide 18: 2020 & Beyond
2020 & Beyond • Committed to pursuing a steady income growth over the next five years with a projected CAGR of 18% on Loans, 19% on Deposits and 18% on Revenues. • Continued investments in process automation & service digitalization are paramount. • Provide convenient services to our customers – ERP
Slide 19: COVID-19 Update & Strategy
= Dd OF KENYA ¢ TANZANIA ¢ RWANDA ¢ MAURITIUS COVID-19 UPDATE & STRATEGY
Slide 20: Update & Strategy
UPDATE & STRATEGY OPERATIONS EMPLOYEES • Ensuring business continuity and operations 24/7. • Additional centers added to existing BCP center to ensure business continuity and adhere to the health official’s • Implementation of BCP policy recommendation to prevent the spread of the disease. • Onboard
Slide 21: Disclaimer
= Dd OF KENYA ¢ TANZANIA ¢ RWANDA ¢ MAURITIUS DISCLAIMER
Slide 22: Important Notice & Forward-looking statements
Important Notice & Forward-looking statements This presentation is based on I&M Bank Rwanda Plc (the “Bank)’s reviewed financial results for the period ended 31 March 2020. The Bank has obtained some information in this presentation from sources it believes to be reliable. Although I&M Bank Rwanda P
Slide 23: Annexures
= Dd OF KENYA ¢ TANZANIA ¢ RWANDA ¢ MAURITIUS ANNEXURES
Slide 24: Growth Pillars
5-YEAR STRATEGIC OBJECTIVES Strategic objective: Sustainable growth through leveraging technology, a strong staff base and customer focused business development. Business Revenue Growth Diversification GROWTH PILLARS Optimizing Operational Channels Excellence FOUNDATION Leverage on group synergy Att
Slide 25: Abbreviations
ABBREVIATIONS Financial Institution CAR Capital Adequacy Ratio BNR National Bank of Rwanda CRR Capital Requirements Regulation IMR I&M Bank Rwanda Plc FY Financial Year MINECOFIN Ministry of Finance and Economic Planning LCR Liquidity Coverage Ratio NISR National Institute of Statistics of Rwanda LD
Slide 26: Contact Information
CONTACT INFORMATION For further information, please contact Iddy RUGAMBA Hugues M. KAYIGAMBA Company Secretary Investor Relations E: invest@imbank.co.rw E: invest@imbank.co.rw Visit our website: www.imbank.com/rwanda I&M Rwanda - Investor Briefing – Q1 2020 26
Slide 27: Thank You
iSIMIBank PLC KENYA ¢ TANZANIA #© RWANDA © MAURITIUS THANK YOU www.imbank.com/rwanda