I&M Bank Rwanda has suffered losses of $10.3m in less than three months due to fraudulent client withdrawals, prompting an investigation to try to recover the money.

The loss exceeded the $7.6m net profit I&M Group made from the Rwandan market in the fiscal year ending December 2022.

I&M Group disclosed the information in its annual report ahead of the annual meeting of shareholders.

Management of I&M Bank (Rwanda) discovered the fraud subsequent to year-end, through customer wallets. Recoveries have been made to date, but investigations are still ongoing, according to the annual report.

In order to protect themselves from financial loss, banks insure cash on hand, cash in the bank, and cash in transit. As a result, underwriters may be responsible for some I&M losses.

ALSO READ: Iraqi asylum seeker contests deportation to Rwanda in European Court over refugee status and mistreatment concerns

I&M Bank entered Rwanda in 2012 through the purchase of a majority position in Banque Commerciale du Rwanda. I&M Bank now controls a 54.47% stake through BCR Investment Company, which was worth $15.4m at the end of 2022.

I&M Rwanda has been the group’s most successful company outside of Kenya, with more than 65,000 clients across 18 locations, 33 ATMs, and more than 400 personnel.

The Rwandan division ended 2022 with a net profit of $7.6m, down from $73m the year before. The group’s operations in Mauritius and Uganda had net profits of $4.7m and $2.1m respectively.

Meanwhile, I&M Kenya’s net earnings increased from $54m to $74.6m over the same time period that the Tanzanian company reported a $3.7m net loss.

This increased the group’s profitability by 37% to $82m.