The I&M Bank Rwanda affiliate lost $10.3 million due to fraudulent client withdrawals in less than three months. This loss prompted investigations to recover the funds.
Between November 1, 2022 and January 17 this year, the funds lost surpasses the $7.6 million net profit made by I&M Group in the Rwanda market.
Before the yearly meeting of the shareholders, I&M Group uncovered the information in its yearly report.
The Group, in the annual report, mentioned that the management of I&M Bank (Rwanda) PLC uncovered events of fraudulent withdrawals via customer wallets. This withdrawal is up to $10.3 million between November to January.
Some repossessions have been made and investigations are still being carried out as at the date of the financial statements.
Banks provide cash in the bank, cash on hand and cash in transit to guard themselves from monetary loss. Consequently, some I&M losses may be the defect of underwriters.
I&M Bank came into Rwanda in 2012 and presently manages a 54.47% stake via BCR Investment Company through the acquisition of a majority position in Banque Commerciale du Rwanda. The share was valued at $15.4 million by December 31.
Providing service to over 65,000 clients around 18 locations, 33 ATMs and over 400 personnel, the Rwanda section has been I&M’s most accomplished company outside of Kenya.
While its operations in Mauritius and Uganda saw net profits of $4.7 million and $2.1 million respectively, I&M Rwanda rounded off 2022 with a net profit of $7.6 million. This profit has dropped from $73 million in the previous year.
Increasing the group’s capacity to make profit by 37% to $82 million, I&M Kenya’s net yields soared from $54 million to $74.6 million within the same period that the Tanzanian company recounted a $3.7 million net loss.
